An additional set of three services used by exporters are likely to be made eligible for exemption from service tax.
Sources in the know said the service tax paid by exporters on commissions paid to foreign agents was likely to be exempted. Foreign agents are responsible for getting orders from prospective clients based abroad.
A notification on the additional service tax exemption may be released on Tuesday.
The move is likely to benefit all exporters, especially from textiles and pharmaceutical sectors. Exporters said the service tax on commission to foreign agents formed a major chunk of the tax paid by them.
The finance ministry made 13 services eligible for service tax refund in three announcements last year (July, October and November)
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