India: Extension of service tax refund for exporters
Description
As of 7 December 2008, the Indian government has extended its service tax refund scheme to another constituency. Now, exporters who have paid commissions to a foreign clearing or forwarding agent are also eligible for the benefits of such a refund. The maximum share of service tax to be refunded has been set at 10 percent of the freight on board (f.o.b.) value of exports.
This measure will benefit firms that contract out for freight-forwarding services. On the assumption that most of these firms are small and medium sized enterprises, then the tariff lines affected are those typically associated with exports by such enterprises from India.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | No |
| Is there any evidence that alternatives to the proposed measure were considered? | No |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | No |
| Was such evidence identified? | No |
| Is such evidence publicly available? | No |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | No |
| Did the government state its intention to review the measure within one year of implementation? | No |
Date Discovered:
Implemented: Yes
Date of inception: 7 Dec 2008
GTA Evaluation: Red
Source:
Government of India. (7 December 2008). Notification nr 33/2008-Service Tax. To be obtained at
http://centralexcisetrichy.gov.in/newcentral/tradenotice/st/yr0809/tn17.pdf
Government Response:
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