Service tax disappoint small and micro industrial sector

Chennai:

The small and micro industries expressed disappointed over the budget for raising service tax from 10 per cent to 12 per cent.

The Industrial Estate Manufacturers Association and Small Industries and Business Entrepreneur’s Association said the rise in service tax will not help the cause of micro and small medium enterprises (MSMEs).

G K Basha senior vice president of Industrial Estate Manufacturer’s Association and president of Small Industries and Business Entreprenuer’s Association S Chandrasekhar also said, “the raising of income tax limit to Rs 2 lakh is only a token measure. We expected a higher exemption limit.”

Interestingly, the small scale sector welcomed the finance minister’s proposal to introducer GST in August 2012.

Chennai District Small Scale Industries Association (CDSSIA) and Federation of Associations of Small Industries of India said that they are happy that the government considered the loan interest at the rate of seven per cent for agriculture sector and reducing the rate of interest to three per cent to those who pay the loans promptly.

T V Hariharan, president of CDSSIA said that his association welcomed the purchase pereference scheme for small and medium enterprises.

Basha said that the industry expected some positive measures like protection for MSME sector from the draconian Sarfeasi Act and the sector is already affected by the prevailing high bank interest rates