Notification for refund of service tax on four taxable services
New Delhi, Sep 17 (UNI) The government today issued notification providing refund of 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.
These are (a) port services provided for export (Section 65 (105) zn) of the Finance Act 1994); (b) other port services provided for export (Section 65 (105) zz); (c) services of transport of goods by roads from ICD to port of export provided by Goods Transport Agency (Section 65 (105) zzp) and (d) services of transport of export goods in containers by rail from ICD to port of export(Section 65 (105) zzzp).
Services tax paid by exporters on input services used for export goods is refunded under the existing schemes. Drawback schemes also factored service tax paid on input services used for export goods.
An official release said here that the issue of extending refund of services 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.
The release said the government held discussion with the stake-holders and identifed these taxble services for which refunds could be provided wherever use of the taxable services culd be linked to export.