No inter-ministerial differences on exempting service tax exports

New Delhi, May 11 (UNI) The Finance Ministry today denied reports that it continues to have differences with the Commerce Ministry relating to exempting service tax on exports.

The Annual supplement to the Foreign Trade Policy released last month had provided for exemption to exports from service tax.

"Various newspapers have been reporting that differences persist between the Finance and Commerce Ministries on this issue," a Finance Ministry release said here.

The release gave details of the issue in the regard.

On the issue concerning rebate or refund of service tax paid on various input services used for goods or services exported, the release clarified that there were no differences between the Finance and Commerce Ministries. The decision was taken with the approval of the Commerce Minister, the Finance Minister and the Prime Minister, it said.

The release explained that the taxes paid on inputs or input services used for manufacture of export goods or for providing export services were already being neutraliSed under rebate, refund and drawback schemes.

However, modalities for refund or rebate of 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 were being worked out in consultation with the Department of Commerce, the releasse said.

UNI