Exporters protest shipping cos' pricing
Exporters have raised their pitch against shipping lines for charging ‘exorbitantly high’ rail freight, which, they claim, is sometimes double of what the shipping lines were paying Concor for their service.
By TNN |
Exporters have raised their pitch against shipping lines for charging ‘exorbitantly high’ rail freight, which, they claim, is sometimes double of what the shipping lines were paying Concor for their service.
Taking cognisance of the problem, the commerce ministry has promised to bring together exporters and officials from Concor to sort out the issue, reports Amiti Sen in New Delhi.
In a meeting with the minister of state for commerce Jairam Ramesh, a delegation from Delhi Exporters Association pointed out that while shipping lines were paying just Rs 16,510 for a 20-feet container to Concor, they were charging exporters anywhere between Rs 20,000 and Rs 30,000 for the same. “We pointed out to the minister that the high inland haulage charges demanded by shipping lines were unwarranted,” DEA president SP Agarwal said.
To make matters worse for exporters, the shipping lines were charging service tax of 12% plus education cess of 2% on the entire rail freight instead of only on 30% of the rail freight as mandated by the government.
“The shipping lines or their agents are charging service tax not only on 100% of the rail freight, but also on the enhanced value charged by them. For instance, if they have paid service tax of 30% on Rs 16,150 per container to Concor, exporters are being made to pay service tax on the entire Rs 20,000 or Rs 30,000 that they the shipping lines charge per container,” Mr Agarwal said.
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He added that Mr Ramesh had promised to organise a meeting between Concor officials and exporters to sort out the issue. “Today, when the government is talking about making Indian exports more competitive, it is a pity that the shipping lines are being allowed to get away with these irregularities,” Mr Agarwal said. Start a SIP with as low as ₹500 with ET Money App!
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