Govt to refund service tax paid by exporters on transport services

Government has decided to refund service tax paid by exporters on four taxable services, which are not in the nature of “input services” but could be linked to export goods. A Notification No. 40/2007-ST issued here today by Central Board of Excise and Customs, Ministry of Finance covers under this, the following four services:-

(i) Port Services provided for export. (Section 65[105][zn] of the Finance Act, 1994)

(ii) Other port Services provide for export. (Section 65[105][zzl])

(iii) Services of transport of goods by road from ICD to port of export provided by Goods Transport Agency. (Section 65[105][zzp])

(iv) Services of transport of export goods in containers by rail from ICD to port of export. (Section 65[105][zzzp])

Service tax paid by exporters on input services used for export goods is refunded under the existing schemes. Drawback scheme also factored service tax paid on input services used for export goods.

The issue of extending refund of service tax paid on taxable services, which are not “input service” but could be attributable to export goods was examined. Unlike goods, Services are intangible in nature. Hence, post audit verification to establish linkage of use of service with export requires a simple and verifiable method. Government held discussion with the stake-holders and identified the above mentioned taxable services for which refund could be provided wherever use of the said taxable services could be linked to exports.



- PIB Press Release