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 May 17, 2008, 12:29 pm
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  Ahmedabad.com

SOA helps to address changing business needs


Union ministry of urban development refused to comment on the apex court’s observation on the issue of sealing unauthorised commercial premises in residential area but sources said that ministry will now be consulting more experts, including legal, to seek solution for the issue.

With the apex court refusing to give more time for authorities concerned to seal such premises, the ministry received a set back on Friday.

"The bill, if finalised will likely be tabled during the next session of the Parliament. Now that the court has observed that there is a bureaucratic nexus, which resulted in such commercial premises to come up in residential area, the ministry is not in favour to take any step which angers the court," said a senior official of the ministry.



International air fares to rise


Air travel on international routes from India on business and first class is set to become more expensive from May 1 this year due to the government levying service tax to the tune of 12 per cent. The International Air Travel Association (IATA) has opposed the government’s move.

"Levying of service tax of 12 per cent will counter India’s efforts to increase tourist arrivals. People flying out of the country will now prefer buying tickets from abroad rather than from India," IATA country manager Robey Lal told this newspaper.

"The government proposes to levy this tax from May 1 this year. This is also giving rise to problems in operationalising the notification due to inadequate time available," Mr Lal emphasised.

Meanwhile, the Board of Airline Representatives, a body of representatives of airlines operating from India has also expressed strong reservations over the government’s move, saying this will dampen growth in the air transport sector.

IATA has also written to finance minister P. Chidambaram and civil aviation minister Praful Patel requesting for withdrawal of the tax. According to the amended service tax rules, the service tax is to be levied by aircraft operators on passengers "embarking in India for international journey in any class other than economy class."



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