Letters: Taxing service

I have been reading the Budget updates and opinions of various industrialist in Business Standard for the past week. One issue worth highlighting is the service tax administration. Service tax refunds to technology parks and export-oriented units, as promised in the policy, are hard to come by. The department collects returns and documents certificates for all refunds claims but does not process them. Most claims are rejected even if the documentation is complete, and companies constantly have to file appeals. Corruption is open and rampant. Unless the department’s terms are agreed to, no refunds are available for legitimate claims. In such an inefficient environment, how can industries function? With all this, if India is able to grow at 7.5 per cent or more, one has to applaud the patience and perseverance of the people in this country.

 

Guna Thantry, Bangalore

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