Govt Notifies Service Tax Sops For Exporters

New Delhi: The Finance Ministry on Sept 17, made the first ever move to refund service tax paid by exporters on non-input services. The refund will now be available on four identified transport and port services that could be linked to export goods. Services offered to exporters by major ports, minor ports, road transport services given by a goods transport agency from inland container depot (ICD) to port of export and transport of export goods in containers by rail from ICD to port of export will now qualify for service tax refund. The refund on certain services came nearly five months after the Commerce and Industry Minister, Mr Kamal Nath, declared service tax exemption on services rendered abroad and charged on exports from India. He had also ensured exporters that tax on services rendered in India and utilised by exporters would be exempted or remitted. The Finance Ministry has identified the four taxable services and that the Commerce Ministry was yet to come up with a list of services or a simple and verifiable method to evaluate linkage of services with goods exported.