Non levy of service tax on export of services – Regarding

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....ment has issued Notification no.2/2003 dated 1.3.2003 in the current year's Budget rescinding the earlier Notification no. 6/99 Service Tax dated 9.4.99 which exempted taxable services from payment of service tax so long as payment for services rendered is received in convertible foreign exchange which is not repatriated outside India.  Consequent to the issue of Notification no. 2/2003 cited....

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....consumed/provided in India in the manufacture of goods which are ultimately exported, no credit of service tax  paid can be availed or reimbursed at present as inter-sectoral tax credit between services and goods are not allowed. 4.  Another question raised is about the taxability of secondary services which are used  by the primary service provider for the export of service....

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....ncement of the rate of service tax from 5% to 8% would be applicable only when the Finance Bill is passed.  If payments are received in the aforesaid case after the Finance Bill is   passed,  the  rate of tax applicable would be 5% so long as the billing has been made prior to the date of passing of the Finance Bill.  If the billing is made subsequent to the date of t....