There is finally some reason for exporters to feel glad about. In a move that will benefit exporters, the finance ministry has said it will provide automatic refunds of service tax to exporters, reports CNBC-TV18’s Aakansha Sethi.
At present, there are huge service refund backlogs. Most exporters did not apply for a refund as it wasn’t available. But now the finance ministry plans to automate the service tax refund which will be initiated from July 15.
The service tax refund of up to 2% will be given on the value of equity on the shipping bill and there will be different categories of products on which different refunds will be available.
These will range from 0.5-2% of Free of Board (FoB) value in the shipping bill. This is likely to cost the government Rs 5,000 crore which means that exporters have about Rs 5,000 crore to gain annually which will be a huge incentive.
The service tax refund of up to 2% will be given on the value of equity on the shipping bill and there will be different categories of products on which different refunds will be available.
These will range from 0.5-2% of Free of Board (FoB) value in the shipping bill. This is likely to cost the government Rs 5,000 crore which means that exporters have about Rs 5,000 crore to gain annually which will be a huge incentive.
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