SERVICE TAX ON EXPORTS TO BE EXEMPTED

The scheme of service tax refunds to exporters – a part of the annual supplement to the Foreign Trade Policy – is on track. The Finance Ministry has said service tax on exports shall be exempted. However, it is added that modalities for refund or rebate for service tax on certain services, which are not input services, but are related to goods or services exported from India and to neutralise service tax on services received or rendered abroad are still being worked out in consultation with the commerce ministry.