INDIA: Exempt Garment Exports from Payment of Service Tax - TEA
The Central Government reduced the rate of Service Tax from 12% to 10% as a relief measure to the industries. Shri. A. Sakthivel, President TEA said that 2% reduction in Service Tax will give only a very minimum relief to the ailing exporting industries and added considering the gravity of impact of economic slow down in the global market, the Central Government should give a complete exemption to the exporting industries from the payment of Service Tax immediately. Shri. Sakthivel further said that when the exporting industries were undergoing a severe crisis and struggling to save job losses, at this juncture, a piece-meal measure from the Government would not be anyway helpful to bail out the exporting industries. He added that in view of the mounting problems, Government should immediately announce the measures requested by the exporting industries.
Added: February 25, 2009 Source: Agencies