CFI demands service tax exemption for power projects
- Monday, February 7, 2011, 9:23
- Service Tax
The Construction Federation of India has sought service tax exemption for development of power projects, on the lines of other infrastructural works in the upcoming Budget.
“Service Tax exemption should be extended to development of infrastructure power generation, transmission and distribution projects,” CFI said in a pre-Budget memorandum to the Finance Ministry.
This, it said, would also reduce the cost of power generation, as power producers are not entitled to credits on taxes paid on procurements.
As of now, these exemptions are granted on development of infrastructure projects, including roads, railways, airport, transport terminals and bridges among others.
CFI representation also sought exemption in service tax for services and goods exported to Nepal and Bhutan under project bonds financed by UN Agencies and Asian Development Bank.
Related posts:
- Government proposed excise waiver and income-tax holiday benefit to power projects based on supercritical technology
- Circular on Power to grant exemption from Service tax
- Exempts goods in relation to generation of power using non-conventional materials – relaxation to projects promoted by states
- Service tax exemption to five more export promotion councils
- DGFT circular on amendment in chapter 8 of FTP regarding mega power projects
