Monday, October 1, 2007

The export rules are specific to services that are “taxable”

How ‘export of services’ is mired in tax complexity

Service exporters have something more to worry about than rupee appreciation: the lack of clarity on the service tax front.

“Not something that augurs well for the growth of the Indian economy,” says Mr Satya Poddar , indirect tax partner, Ernst & Young. “More so as the service sector has been the key driver of our growth.”
To send a positive signal to the exporters, the Ministry of Finance (MoF) needs to simplify the rules for defining export of services, and for granting timely refunds of input taxes, he adds, in a recent email interaction with Business Line.

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