Service Tax Notification upset garment exporters - Mr Anand
19 Sep '07
2 min read
Garments Exporters who have been long waiting for Service Tax Exemption have been disappointed with the Notification No.40/2007 Service Tax dated 17th September, 2007 of the Ministry of Finance, Department of Revenue, providing refund of Service Tax paid by exporters only on Port Services provided for export, services of transport of export goods by road from ICD to port of export by Goods Transport Agency and services of transport of export goods in containers by rail from ICD to port of export.
The Notification does not cover a number of other important services on which Service Tax is being paid by exporters. The relief is therefore, very much short of our expectations as well as recommendations earlier announced by the Ministry of Commerce, as it does not neutralize the adverse impact of sharp appreciation of the value of rupee which has seriously eroded the profitability of exporters.
The Government should therefore, provide complete exemption to exporters from payment of service tax on all services including banking charges, couriers service, commission to foreign agents, foreign traveling expenses and participating in overseas trade fairs.
The Government's Policy has been not to export taxes and duties. Charging Service Tax on exports leads to export of taxes which should be exempted in full.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
