Service tax refund fails to cheer exporters
Last updated: 22 September 2007
Follow on
Google News
NEW DELHI: The finance ministry has approved a list of services, including port-based and transport services, for which exporters will be refunded service tax. While the notification has come at a time when exporters are looking forward to all possible relief to help cope with the rising rupee, the announcement was actually made five months ago in the foreign trade policy in April.
Exporters, however, are not too impressed with the delayed sop. They say that a host of other services they avail of have not been included in the list. Moreover, the fact that the service tax would be refunded and not zero-rated or exempted implies it would add to the running around that exporters have to do, they contend.
According to a finance ministry statement, exporters will get a refund of the service tax they pay for transporting goods in major and minor ports, and from inland container depots to ports through rail and roads. The government collects 12% service tax along with 3% education cess on services.
Exporters already get refund of the service tax paid by them on input services used for exports. The drawback scheme also factors in service tax paid on input services used for exporting goods, the release added.
Expressing dissatisfaction with the notification, Federation of Indian Export Organisations (FIEO) president Ganesh Gupta said it did not meet the ‘bonafide’ demand of trade and industry for zero-tax rate on exports.
FIEO added that important services such as commission to foreign agents, professional fee, foreign travelling expenses, bank charges on loans, courier services and participation in trade fairs have not been included in the notification.
Besides providing exemption from payment of tax on all services, the notification should be made applicable from the date on which such services were brought under the service tax net, Mr Gupta added.
News posted by
CCI News Desk
Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.
Click here to Login and post comments OR
Recent News :
- ICAI Issues Public Warning After Repeated Attempts to Gain Unauthorized Access to Its Digital Systems
- Core Industries Index Overhauled with 2022-23 Base Year and Expanded Industry Coverage
- MCA Warns Stakeholders Against Fake Calls, WhatsApp Messages and Phishing Scams
- ICAI Inaugurates Global Summit 2026 to Strengthen India's Leadership in Global Capability Centres
- Social Protection Fund Notified as Specified Person Under IT Act 2025 for Tax-Exempt Investments in India
- Centre Revises Excise Duty Rates on Petrol and Diesel Components; Changes Effective from 16th July 2026
- CBDT Notifies Cost Inflation Index (CII) for FY 2026-27 Under Income Tax Act, 2025
- ICAI Keeps Global Networking Guidelines 2025 in Abeyance Until Further Orders
- Direct Tax Collections Rise 16.4% to Rs 6.51 Lakh Crore as on 13th July 2026 for FY 2026-27
- Finance Ministry Empowers DRAT Delhi Chairperson to Decide PNB Appeals
Popular News
- CBDT Condones Delay in Filing Form 10AB for 80G Approval Applications Till 31st March 2026
- CBDT Notifies TDS Exemption on Aircraft Lease Rentals Paid to IFSC Units Under Income Tax Act, 2025
- CBDT Notifies TDS Exemption for Specified Payments to IFSC Units Under Income Tax Act 2025
- ICAI Introduces New Tax Audit Count Tracking Feature on UDIN Portal
- CBDT Notifies Cost Inflation Index (CII) for FY 2026-27 Under Income Tax Act, 2025
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
