Indian Cotton Federation has welcomed the Union Budget proposal to provide Service Tax exemption for loading, unloading, packing, storage or ware housing, transport by vessel, rail or road of cotton (ginned or baled).
J. Thulasidharan, president of the federation, said that textile industry consumed majority of the cotton produced in the country. The textile mills in Tamil Nadu purchased their cotton requirements from other States. Hence, transport cost was one of the major expenses for the mills.
Exemption of the 12.36 per cent Service Tax will benefit the cotton trade and industry as it will bring down the transport cost. The association had been asking for such measures to support the cotton industry, he said.
