Notification to Provide average Rates of Service Tax Refund for a wide Range of Goods Exported from India

Central Government issues Notification to Provide average Rates of Service Tax Refund for a wide Range of Goods Exported from India;

Adds to E-Enabled Service Delivery to Exporting Community, Limits Public interface and Reduces Transaction Costs in obtaining Refunds

The Central Government has issued a notification today to provide average rates of service tax refund, ranging from 0.03% to 0.20% of the F.O.B. value of export, for a wide range of goods exported from India. The average rate of refund is in respect of 18 identified services used beyond the factory gate. This is being done to implement the simplified scheme.
An announcement was made to this effect by the Union Finance Minister Shri Pranab Mukherjee in his Budget Speech 2011 for introducing a simplified scheme for the refund of service tax paid on services used for export of goods on the lines of drawback of duties.

As in the case of payment of duty drawback, the service tax refund will be enabled by the Indian Customs EDI System resulting in the amounts getting directly credited into the exporters’ bank accounts within a few days of confirmation of export without additional export documentation. Customs Officers have separately been vested with powers of Central Excise/Service Tax Officers for this purpose.

The scheme adds to the e-enabled service delivery to exporting community, limits public interface as well as reduces transaction costs in obtaining refunds.

Related posts:

1. Refund Service Tax on Exports Further Extended by Service Tax Notification No. 3/2008 Dated 19/02/2008
2. Transport of goods by air service/road service/rail service – Exemption to services, as specified in section 65(105)(zzzp)/(zzp) and (zzn), provided to a person located in India when goods are transported from outside India to a final destination outside India
3. Whether availment of credit of service tax paid on the insurance service to cover the damage or loss to the exported goods in the foreign countries except India is eligible as input service?
4. Service Tax Refund to exporters of 3 more services allowed
5. Service tax Notification of Refund on Exports