In a letter to Union finance minister, P Chidambaram, Chamber president, A Shaktivel claimed that the government had notified that with effect from January 1, 2005 during the process of transportation of goods by transporters, the trade and industry, who pays the freight, will be liable to pay service tax, and accordingly, they have to get themselves registered under excise act.
"The organised sector, which already shares the burden of substantial tax collection to the exchequer should not be made a scapegoat because of the transport operators," Shaktivel said.
He added that service tax has to be paid by the service provider and not by the person who avail the services. He pointing out that Tsunami has badly affected Tamil Nadu and, this was not quite opportune time for protest or any agitation.
In order to protect the interest of trade and industry, consignee, consignor and the common man, the Centre should consider their views and should not pass the burden on them, instead of service providers, he said.
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