Government extends services eligible for refund of Service Tax

To provide a fiscal stimulus to the economy Government of India has announced some changes in respect of Service tax refund scheme for exporters.

The GOvernment of India provides for refund of service tax paid by exporters on 18 taxable services attributable to export of goods. The benefit of such refund has now been extended to services provided by a clearing and forwarding agent to exporters also. In addition, the threshold limit of refund of service tax paid by exporters on foreign commission agent services has been enhanced from 2% of FOB value to 10% of FOB value of export goods.

Further, drawback benefit can now be availed of simultaneously with refund of service tax paid in respect of exports.

Source : Press Information Bureau

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