Fin min working on exempting service tax on exports
Finance Ministry is working in consultation with Commerce Ministry to exempt or refund service tax on certain items related to exports and is expected to take a final decision soon.
By PTI |
NEW DELHI: Finance Ministry is working in consultation with Commerce Ministry to exempt or refund service tax on certain items related to exports and is expected to take a final decision soon.
In a statement issued on Friday, the Finance Ministry said modalities for refund and rebate on service tax on certain services, which are not input services but are related to goods or services exported from India, are being worked out in consultation with the Department of Commerce.
Insisting that there are differences between the two ministries on the issue, the Ministry also said it is working in consultation with Commerce Ministry to neutralise service tax on services received or rendered abroad.
"There are no differences between the Finance and Commerce Ministries and this decision was taken with the approval of the Commerce Minister, the Finance Minister and the Prime Minister," said the statement.
The taxes paid on inputs or input services used for manufacture of export goods or for providing export services are already being neutralised under rebate, refund and drawback schemes, it added.
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