Government forms panel to review e-refund of service tax for exports

NEW DELHI: The government today set up a committee to review the scheme for electronic refund of service tax for exporters and evolve a scientific approach for fixing of rates for the refund.

The committee, chaired by Director General of Service Tax Sanghamitra Panda, would also propose a revised schedule of rates for service tax refund, an official statement said.

They would take into account the revision of rate of service tax from 10 per cent to 12 per cent and also movement towards 'negative list' approach to taxation of services, it added.

"A committee ... has been constituted to review the scheme for electronic refund of service tax paid on taxable services used for export of goods," it said.

In January, with an aim to streamline the procedure for service tax refunds for exporters, the government had linked it with electronic payment system and fixed the average rate at 0.03-0.2 per cent of the shipment value.

The committee may interact with export promotion councils, Chambers of Commerce or any other business or industry association for the exercise, it said.

It has been asked to submit its report to the CBEC before June 20.

Other members of the committee include Sushil Solanki, Commissioner of Service Tax and JM Kennedy, Director, Tax Research Unit.