MUMBAI, Dec 4: Mumbaikars will continue to be affected by rising prices of essential commodities as the state traders under the banner of Federation of Association of Maharashtra (FAM) have resolved to continue with their strike, though they had called it off yesterday. The Federation, which is spearheading the strike, renewed its agitation as the Central government has not kept in abeyance the five per cent service tax levied on carriage of goods by road for the entire trade, said Surendra T Salvi, president of FAM, today.

He added that the bandh will continue indefinitely till the service tax is withdrawn completely.

According to a FAM spokesman, only businesses registered with the sales tax department and having a turnover of more than Rs 50 lakh per year have been exempted from the service tax. However, the trading community not fulfilling these criteria will have to pay the service tax, the spokesman felt. These include any factory governed by the Factories Act (1948), any company established by or under the Companies Act (1986) or any corporation established under any law.

The net extends to any society registered under the Societies Registration Act (1860) or under any law corresponding to that act in India; any co-operative society established by or under any law, any dealer of excisable goods who is registered under central excise Act 1944 or the rules laid there under; any body corporate established by or under any law. ``Many traders are not getting any benefit from the government decision," said the spokesman.

Sugar price in the commodity market declined following the resumption of supply after the strike was called off. The price slumped by Rs 50 a quintal on heavy offerings. Grain prices also showed a slight decline. However, the undertone was weak following imminent rise in the depleted supplies. Bombay Metal Exchange (BME), Bombay Non-Ferrous Metals, Scrap Merchants Association and Stainless and Steel Merchants Association are also participating in the strike. ``All shops and establishments will remain closed till further notice," said a press statement of the BME.

The Indian Merchants' Chamber (IMC) had convened a meeting of the trade and industry associations of the western region to decide not to resume trading and continue the ``non-cooperation agitation''. Traders were willing to pay any tax but not ready to register themselves with the excise department.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.