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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.


 

 

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