Service Tax Circular

No.CLE/POL/CIRCULAR/2007                                                                                 Dec. 6,2007

Members of the Council. 

Sub :  Exemption of Service Tax on certain specified services 

Dear Member,  

We wish to invite our kind attention to our earlier circular of Oct. 11, 2007 informing about the various relief measures announced by the Government of India to the leather sector on account of continuing Rupee Appreciation against overseas currencies.  

We wish to inform you that the Department of Revenue, Ministry of Finance, Government of India has now issued a Notification No.42/2007-Service Tax dated Nov. 29,2007 exempting certain cleaning services and services provided for storage and warehousing of export goods from Service Tax. A copy of the Notification is enclosed herewith for your information and reference.  

Members may please note that the exemption will be subject to the conditions as specified in the earlier Notification No.41/2007-Service Tax  dated Oct. 6, 2007.  Thus, the Service Tax has to be initially paid by the exporter and will have to be claimed by the exporter in the prescribed form on quarterly basis for consideration of refund. This Service Tax refund facility will be applicable only if no CENVAT credit of service tax paid on exempted Services is availed and if the goods have been exported without availing drawback of service tax paid on exempted services.   

With regards

Dr. K. Elangovan
Executive Director