Service Tax exemption for exports thru refund route - cleaning services and storage added to the list

By Vijay Kumar

Already by Notification Nos 40 and 41/2007 – Service Tax, seven services used for exports are exempted and the exemption operates by a complicated refund scheme.

Now two more services are added to the list:

1. Specialized cleaning services namely disinfecting, exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter. There are two conditions- the exporter should furnish a copy of the agreement with the buyer requiring such specialized cleaning and the service provider is accredited to provide such specialized cleaning services.

2. Services provided for storage and warehousing of said goods. There are two conditions here too- goods are stored in a warehouse approved by the competent authority; and the storage or warehouse is exclusively used for the purpose of storage or warehousing of export goods.

The seven Services exempted as of now are

1. Port Services provided for export.[zn])

2. Other port Services provide for export. [zzl]

3. Services of transport of goods by road from ICD to port of export provided by Goods Transport Agency.[zzp])

4. Services of transport of export goods in containers by rail from ICD to port of export. [zzzp])

5. General Insurance Services provided to an exporter in relation to insurance of export goods. [d])

6. Technical testing and Analysis Agency Services in relation to technical testing and analysis of export goods. [zzh])

7. Inspection and Certification Agency Services in relation to inspection and certification of export goods. [zzi]

Notification No.42/2007-Service Tax Dated November 29, 2007