ASSOCHAM wants exemption from Service Tax for Agri Produce

By Vijay Kumar

IN its pre-budget memorandum submitted to the Finance Minister, ASSOCHAM has suggested:

1. Keep all services provided for agricultural produce outside service tax ambit. Services like warehouse management, security, laboratory testing and others that are essential to secure storage of agri-produce should be included in the negative list or in the list of exempted services.

2. Exempt services like leasing of land and agricultural equipment, agri-extension services and others provided in rural areas or marketing agricultural products from service tax.

3. In order to prevent misuse of exemptions, appropriate rules can be framed for certification of services provided in rural areas by governmental bodies like the gram panchayats, village post-master and others.

4. Levy of service tax on the processing of whole pulses into split pulses that are carried out in factories adds to the high prices of pulses, which is a staple diet for common man.

India Inc is to meet the FM today.