Related Keywords: Cotton ginned and baled, cotton industry, service tax
Cotton will be soon applicable for 12.36% service tax on transport and storage, resulting in price rise. Prices of cotton that's ginned and baled likely to rise as their transport and storage have been deemed ineligible for exemption from service tax by the finance ministry, P Chidambaram.
Consumer affairs ministry officials said that they are yet to review the clarification. They are concerned for cotton as it will have a larger impact and they are still working on it with the finance ministry, one of them said.
