Interviews
FIEO welcomes new service tax circular but takes up unresolved issues
13 Mar '09
2 min read
Welcoming the clarification issued by CBEC on various issues of refund of service tax to exporters, Shri A Sakthivel, President, Federation of Indian Export Organisations (FIEO) said that increase in time period for filing claims from two months to six months for the past cases, granting refund on gross amount received ignoring deductions made by the banks from export remittances, allowing submission of consolidated FIRC with details of exports and acceptance of certified copies of documents will facilitate settlement of service tax.
However, President, FIEO, said that the circular has not yet solved the problems of the exporters who have exported under Drawback Scheme as no clarification has been issued about applicability of the date of amendment allowing grant of service tax refund for those who availed Drawback. The circular also has given a jolt to the exporters as it has turned down the applicability of service tax refund from the date on which the same was permitted under the Foreign Trade Policy. Shri Sakthivel said that government should announce refund of service tax on all eligible services irrespective of their date of inclusion from the date on which the said facility was notified in the Foreign Trade Policy 2004-2009.
He also added that filing of service tax claims should be permitted within six months from the date of exports or the date of realisation, whichever is later, as for certain services like commission to foreign agents, service tax is sometimes paid after realisation of export proceeds. If export proceeds is realised after six months from the date of exports (RBI allows one year for realisation of export proceeds), such claims will be time barred under the present stipulation added, President, FIEO.
Shri Sakthivel said that he will be taking up these issues with Finance Ministry so that exporters are not burdened with huge service tax components which remained unpaid.
However, President, FIEO, said that the circular has not yet solved the problems of the exporters who have exported under Drawback Scheme as no clarification has been issued about applicability of the date of amendment allowing grant of service tax refund for those who availed Drawback. The circular also has given a jolt to the exporters as it has turned down the applicability of service tax refund from the date on which the same was permitted under the Foreign Trade Policy. Shri Sakthivel said that government should announce refund of service tax on all eligible services irrespective of their date of inclusion from the date on which the said facility was notified in the Foreign Trade Policy 2004-2009.
He also added that filing of service tax claims should be permitted within six months from the date of exports or the date of realisation, whichever is later, as for certain services like commission to foreign agents, service tax is sometimes paid after realisation of export proceeds. If export proceeds is realised after six months from the date of exports (RBI allows one year for realisation of export proceeds), such claims will be time barred under the present stipulation added, President, FIEO.
Shri Sakthivel said that he will be taking up these issues with Finance Ministry so that exporters are not burdened with huge service tax components which remained unpaid.
Federation of Indian Export Organisations(FIEO)
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