Exempt MRO from Service Tax - ASSOCHAM Conference
THE Associated Chambers of Commerce and Industry - ASSOCHAM held its National Conference on Service Tax yesterday at New Delhi. It was suggested that Maintenance, Repair and Operations (MRO) Business has a huge potential to attract foreign investments and earn precious foreign exchange. Hence, it is desirable to exempt the MRO services as a whole from imposition of service tax in order to promote the industry in India. MRO services needs to be included in the negative list of services, which are not taxable. They recommended that for promoting the upcoming MRO business which has just begun to grow in India MRO services should be exempted from service tax.
JK Mittal, Co-Chairman ASSOCHAM National Council on Indirect Taxes commented that CENVAT credit of Service Tax paid on Goods Transport Agency (GTA) services for outbound transport should be allowed without any condition.
The conference was inaugurated by Dutt Majumder, former Chairman of CBEC and at present Indirect Taxes Ombudsman. He said that there was lack of awareness among the taxpayers about the institution of Ombudsman and that industry as well as general public was hesitant in filing complaints.