News Article

Indian Service Tax Creates a Stir

Industry- & Retail Organizations

LUDHIANA, India (Feb 3) -More than 19 industrial organisations organised a protest rally against the imposition of service tax on business auxiliary services and transport services. The industrialists also staged a rallyoutside the office of Central Excise at Rishi Nagar. More than 200 industrialists took out a rally on cars and two-wheelers from the office […]

LUDHIANA, India (Feb 3) -More than 19 industrial organisations organised a protest rally against the imposition of service tax on business auxiliary services and transport services. The industrialists also staged a rallyoutside the office of Central Excise at Rishi Nagar.

More than 200 industrialists took out a rally on cars and two-wheelers from the office of United Cycles Parts and Manufacturers Association. They put black flags in front of their vehicles and also wore black badges to register their protest. The industrialists demanded exemption from service tax for their sector.

The industrialists asserted that Ludhiana has a large number of tiny and small industries doing job work for big bicycle units. They highlighted that the job work or production of goods on behalf of a client has been brought under the service tax net. These include the units dealing in electroplating, zinc plating, heat treatment, forging, threading etc.

Varinder Kapoor, general secretary of United Cycles Parts and Manufacturers Association said, ”These works should be kept at par with agriculture, printing and textile processing, as these engineering processes are similar to those of textile processing.”

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