COSIA seeks higher service tax exemption limit of Rs 25 lakh
The Chamber of Small Industry Associations (COSIA) has requested the Finance Ministry to relax the threshold limit for exemption in service tax to Rs 25 lakh from Rs 10 lakh currently
In a memorandum submitted to the ministry earlier this week, COSIA chief M R Khambete said the limit of Rs 10 lakh in service tax is prevailing for more than 5 years.
COSIA is a national chamber of micro, small and medium enterprises.
“Considering the inflation in the mentioned period, the threshold limit should be raised to Rs 25 lakh. Similarly, for excise duty, the threshold limit should be raised to Rs 3 crore,” he said.
The vice president of COSIA, Sandeep Parikh made a presentation before the Member & Director TRU (Tax Research Unit) and with one technical director during the pre-budget meeting where the suggestions of the COSIA were put forth.
The Association has also suggested that there is a need for RAC for service tax as in the case for Central Excise. “Since service tax issues are not considered in RAC for Central Excise, it will be proper that RAC for ST should be established on the same lines that of RAC for CE,” he told the meeting.
Besides, the Association gave various suggestions relating to the Cenvat credit, proof of exports, SEZ facilities, processing of goods, accounting in service tax.
The association made as many as 15 suggestions to the ministry in the pre-budget meeting.