Service Tax Refund Scheme (Exporters)

Service Tax Refund Scheme for Exporters- Notification No.52/2011 Dt. 30 Dec 2011

This is a simplified scheme for the refund of service tax paid on services used for export of goods on the lines of drawback of duties. It provides for average rates of service tax refund, ranging from 0.03% to 0.20% of the F.O.B. value of export, for a wide range of goods exported from India. The average rate of refund is in respect of 18 identified services used beyond the factory gate.
As in the case of payment of duty drawback, the service tax refund will be enabled by the Indian Customs EDI System resulting in the amounts getting directly credited into the exporters’ bank accounts within a few days of confirmation of export without additional export documentation. Customs Officers have separately been vested with powers of Central Excise/Service Tax Officers for this purpose.
The scheme adds to the e-enabled service delivery to exporting community, limits public interface as well as reduces transaction costs in obtaining refunds.

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