Exemption of Service Tax on Port and Transport Services related to export of goods

No.CLE/POL/SER.TAX /2007                                                                                                              Sept. 19, 2007

Members of the Council.  

Sub : Exemption of Service Tax on Port and Transport
Services related to export of goods

Dear Member,  

As members are aware, more than 80 service profiles are liable for levy of Service Tax as per provisions of the Service Tax Act (Chapter V of the Finance Act, 1994), as amended from time to time.  

We wish to inform you that the Department of Revenue, Ministry of Finance has issued Notification No.40/2007/Service Tax dated Sept.17,2007 exempting the following port and transport services, received by an exporter and used for export of goods from the whole of Service Tax leviable under Section 66 of the Finance Act, subject to certain conditions as specified in the said Notification.  

Section of the Service Tax Act	Details of Services exempted
Section 65 (105) (zn)	Services Provided to any person, by a port or any person authorised by the port, in relation to port services, in any manner
Section 65 (105) (zzl)	Services Provided to any person, by other port or any person authorised by that port in relation to port services, in any manner;
Section 65 (105) (zzp)	Services Provided to a customer, by a goods transport agency, in relation to transport of goods by road in a goods carriage;
Section 65 (105) (zzzp)	Services Provided for transport of export goods from the inland container depot to the port of export

As per the said Notification, the exporter has to initially pay the applicable Service Tax on the exempted Services mentioned above and then claim refund.

A copy of the Government Press Note issued in this regard is also attached herewith.

With warm regards

Dr. K. Elangovan
Executive Director

 

Notifications/Circulars