The Hindu : Andhra Pradesh News : ‘Move to tax service organisations unfair’

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Wednesday, Mar 05, 2008
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Andhra Pradesh

Andhra Pradesh

‘Move to tax service organisations unfair’

Staff Reporter

ELURU: The proposed move by Finance Minister P. Chidambaram to amend the Section 11 of the Income Tax Act, bringing the trade and welfare organisations under the tax net, drew sharp protest from the Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCI).

Speaking at a gathering of traders here on Tuesday, Nitin Parekh, Chairman of Trade and Commerce Committee of the FAPCI, observed, “Mr. Chidambaram might have cheered the salaried class and the other sections with his election-eve soft budget. But it’s quite unfair on his part to tax the service organisations by seeking to amend the Income Tax Act”.

The amendment move was aimed at treating the collections made by the trade and welfare organisations from its members in the form of membership fee as part of income and taxing it,” he explained. If that was the case, the organisations could no longer serve its members, he added while pressing for withdrawal of the proposal for an amendment to the Income Tax Act.

Meanwhile, a section of traders expressed serious concern over the forays being made by the multi-national companies into the retail market. “If the trend is allowed, many a small and medium trader will be displaced,” a representative of the AP Dal Merchants Association from Rajahmundry said.

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