The India finance ministry extended the service tax refund scheme for exporters to three more services, but stopped short of including 14 other areas for a similar relaxation.
With this move, 13 services used by exporters have been made eligible for refund of the tax liability.
The service tax on goods transportation agencies and transport of export consignments by rail containers to sea ports, airports and inland container depots has been made eligible for refund to exporters.
In addition, exporters will also get a refund on the service tax paid on courier services used by them to transport goods and documents.
Service tax is levied at the rate of 12 percent plus a 3 percent cess, taking the total incidence to 12.36 percent. The relaxation on service tax, which account for up to five percent of the freight-on-board (FoB) value of export consignments, is aimed at cushioning losses of exporters hit by the 12 percent annual appreciation in the rupee.
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