Indian railways levied a service tax of 3.09% on transport of several commodities including iron ore, coal and cement. Sponge manufacturers will be affected most of this hike.
“Levy of service charge will increase transport cost by Rs 25-100/t (based on distance) for iron ore and coal.Sponge iron industry which is undergoing a bad phase, service tax will further squeeze our margins. It is difficult to comment if it can be passed on to the customer.” said a sponge manufacturer based in Chattisgarh.
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