Tamil Nadu - Tirunelveli   

Mixed response to bandh call in southern districts

By Our Tamil Nadu Bureau

TIRUNELVELI, FEB. 1. The bandh call given by a traders' association against the proposed Value Added Tax and Service Tax evoked mixed response in the southern districts on Tuesday.

Most of the shops in Tirunelveli and Palayamkottai remained open while over 80 per cent of the shops in the rural areas downed shutters.

More than 80 per cent of shops at Valliyoor, Tenkasi and Ambasamudhram downed shutters and black flags could be seen in front of the closed business establishments as a mark of protest.

In Tirunelveli and Palayamkottai, black flags could be seen only in very few areas.

Tuticorin

Protesting the Government's decision to levy service tax on trading activities, members of the Indian Chamber of Commerce and Industry here stopped all trading activities in the town.

According to D.R. Kodeeswaran, secretary, ICCIT, the Government's decision was an injustice to traders.

Measures should be taken to impose service tax on goods transport agents and not on traders.

Nagercoil

All shops and commercial establishments remained open in Kanyakumari district on Tuesday.

This despite a traders association to close all the shops in protest against implementation of value added tax, said the district president of `Vanigar Sangangalin Peravai,' K.A. Kumaravelu.

Appeal to Finance Minister

The Tirunelveli District Chamber of Commerce and Industry has appealed to the Union Finance Minister, P. Chidambaram, to withdraw the service tax imposed on traders.

In a telegram to the minister, the secretary of TDCCI, G.S. Janardhanan, said the recent order by the Union Government forcing the traders to pay the service tax now being paid by the lorry agents, who actually transport consignments, was totally unjustifiable.

Since the transporters offered the service of moving the cargo, the tax should be levied only on them and not on the traders.

The Union Government should withdraw the newly imposed tax on traders, Mr. Janardhanan said.

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