New Delhi: The Finance Ministry on Feb 19, extended the service tax refund scheme for exporters to three more taxable services, taking the overall number of such services to 13. The three services eligible for service tax refund are courier services, goods transport agency services availed for transport of export goods from the place of removal to actual place of export that is inland container depot (ICD)/airport/port and transportation services in containers by rail from the ''place of removal'' to ICD/airport/port.
These three services are not in the nature of input services but could be connected to export goods and hence the decision to permit refund of service tax. Service tax paid by exporters on input services used for export goods is neutralised under various existing schemes like drawback scheme. So far, the Finance Ministry has specified about ten taxable services, which are not in the nature of input service but could be attributable to exports, as services that would qualify for service tax refund. These comprise port services provided for export, transport services on road and rail for movement of goods from ICD to port of export, general insurance services, technical testing and analysis agency services, storage and warehousing services and business exhibition services.
These three services are not in the nature of input services but could be connected to export goods and hence the decision to permit refund of service tax. Service tax paid by exporters on input services used for export goods is neutralised under various existing schemes like drawback scheme. So far, the Finance Ministry has specified about ten taxable services, which are not in the nature of input service but could be attributable to exports, as services that would qualify for service tax refund. These comprise port services provided for export, transport services on road and rail for movement of goods from ICD to port of export, general insurance services, technical testing and analysis agency services, storage and warehousing services and business exhibition services.
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