Chennai exporters interact with Service Tax Commissioner
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Mr. P K Jain, Commissioner of Service Tax (centre) addressing the participants. On his right is Mr. M Rafeeque Ahmed, Past President, FIEO and on his left is Mr. Rajendra Kumar, Vice Chairman of Institute of Chartered Accountants of India. |
While export growth has been consistently high in the last five years and has contributed substantially to the growth of GDP, there is a need to sustain this performance in the face of appreciating rupee, especially when the inherent costs are so high, says a Past President of FIEO, Mr. M. Rafeeque Ahmed.
While welcoming the participants to an Interactive Meeting with Service Tax Commissioner Mr. P.K. Jain on 19th September at Chennai, Mr. Ahmed further observed that the recent announcements exempting service tax for exporters on port charges, transport charges etc. was though a welcome measure, there were many other services, such as services rendered abroad by exporters, which required similar exemptions. About 60 exporters joined the meeting.
Asked by a participant if he has to pay service tax on the services rendered by domestic agents who are paid commission in their overseas accounts, the Service Tax Commissioner clarified that in this case the service was being imported and thus he had to pay the service tax. Tax exemption is available only in case of export of services, he added. Mr. Jain clarified that local agency commission is not exempted from service tax.
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Responding to a query by another exporter with respect to export of tractors in containers sealed by central excise, Mr. Jain clarified that in this case the exporter would get the refund of service tax paid from container freight station to the port and not from factory to the port. He went on to say that tax refund was available only for port services and not on the services rendered by CHAs. |
Mr. P. Rajendra Kumar, Chartered Accountant and Vice-Chairman, Institute of Chartered Accountants of India during his address explained various provisions related to service tax and the procedures for claiming refund etc. He specifically highlighted the details of recent notifications issued for providing refund of tax paid on select services.
