Monday, February 11, 2008

A definite challenge for companies is to keep their overall tax costs as low as possible

Retail boom in the indirect tax web
While retailers are concerned about the high cost of real-estate, the recent levy of service tax on ‘renting of immovable property” is likely to be an added cost to the companies in the absence of any taxable output service offered by them, says Mr Varanasi Suresh, a Gurgaon-based expert in indirect taxes. It is noteworthy that there is no tax credit set-off available between service tax and VAT (value-added tax), he adds, during an e-mail exchange with Business Line, on the key challenges for retail and the associated indirect tax costs.

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