« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  Now, software may hold up tax refunds... CLB chairmanship extended for 2 years... » More service tax sops for exporters September, 20th 2007 There is more relief in store for harried exporters. The list of services on which exporters have been granted exemption from payment of service tax may be expanded. Commission paid to foreign agents which forms a sizeable chunk of the service tax paid by exporters in sectors such as pharmaceuticals and textiles could be one of the services added to the list. The government is also examining the exporters demand to exempt service tax on movement of goods from factories to inland container depots (ICDs). The finance ministry announced service tax exemption only on transportation of goods from ICDs to ports. It is, however, unlikely that the government would provide exemption (known as zero-rating) instead of refunds. Exporters had argued that service tax should be zero-rated as giving refunds would just add to the paperwork and result in delayed payments. Sources said the finance ministry is working on a mechanism to check misuse of the exemptions. The finance ministry, on Tuesday, notified refund of service tax for exporters for transporting goods in ports and from ICDs to ports through rail and roads. Government sources said the finance ministry was favourably considering inclusion of commission paid to foreign agents in the list of exempted services for exporters. Although it cant be said when it would happen, there is a fair chance that commission to foreign agents will be included in the exemption list, the source said. According to Fieo director-general Ajay Sahai, the government should not exclude commission to foreign agents as it forms a sizeable component of service tax paid by exporters. In the pharmaceutical sector, foreign agents charge 15% commission while in the textiles sector, commission is as high as 10%. A 12.5% service tax on these services results in a burden of about 1.8% of the export value, Mr Sahai explained. Officials from the commerce and industry minister pointed out that the government was also looking at the demand to exempt movement of goods from factories to ICDs. Exporters have argued that giving exemptions only for transportation from ICDs to ports is unfair to land-locked states. Exporters in states such as Punjab and Jammu & Kashmir end up spending much more on transportation from factories to ICDs than from ICDs to ports. This demand is also being taken into account, the official said.