May 2008
Clarification regarding Service Tax Refund for export of services : Policy Circular No. 1 (RE-08)/2004-2009, dated 11-4-2008.
By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Chartered Accountants
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Service tax :
25 Clarification regarding Service Tax
Refund for export of services : Policy Circular No.
1 (RE-08)/2004-2009, dated 11-4-2008.
In addition to the various Circulars that have been notified
in the recent past pursuant to the decision to refund/exempt Service Tax on
export of services, further clarifications have been issued as under :
- Services which would be exempt from Service Tax include participation in
exhibition outside India, services availed outside the country such as Customs
House Agent (CHA) Services, Accountancy Services, etc.
- For the newly introduced service ‘Foreign exchange dealer’, there would be no
Service Tax on exports as well as imports.
- Clearing and forwarding agency, handling of exports cargo would not be liable
to Service Tax
- In case there are new areas notified for levy of Service tax, simultaneous
refund notifications would also be issued for exports wherever proper linkages
can be established.
