MINISTRY OF FINANCE, COMMERCE MINISTRY CLASH ON SERVICE TAX REFUND TO EXPORTERS

The finance and commerce ministries have locked horns yet again on the issue of reimbursement of service tax to exporters. The commerce ministry has demanded details of all clearances made so far by the tax authorities after exporters complained that finance ministry has cleared less than 5% of refund claims and rejected the rest for flimsy grounds. A commerce department official told ET exporters had complained that even though the finance ministry allowed service tax reimbursement on paper, very little was actually being refunded as the rules for making claims were ambiguous and unrealistic. “We have asked the finance ministry to give us details of the claims made and the refunds given. Wherever we find that claims have been rejected on unrealistic grounds, we are going to contest that,” the official said.

Source: economictimes.indiatimes.com