Govt decides to exempt exports from service tax - India

New Delhi: The Government on Thursday decided to exempt services exports from service tax and expanded the scope of a host of schemes to boost merchandise exports while fixing a target of $160 billion for 2007-08.
Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and the government hopes to achieve $160 billion in the current financial year.
Besides merchandise exports, the country also exported services worth $76.10 billion, he said. Under the review of the trade policy, the Vishesh Krishi and Gram Udyog Yojana for promoting agriculture exports has been expanded to include soyabean and coconut oil as well as food preparations such as soups.
The government also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then, Nath said.
Further, the Focus Product and Focus Market schemes has been expanded to include additional items and 16 more countries. The corpus of Focus Product scheme has been increased to Rs 1,000 crore from Rs 650 crore last fiscal.
In a bid to encourage SEZs, Nath said, developers and co-developers of these zones would be covered under duty refund schemes
New Delhi: The Government on Thursday decided to exempt services exports from service tax and expanded the scope of a host of schemes to boost merchandise exports while fixing a target of $160 billion for 2007-08.
Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and the government hopes to achieve $160 billion in the current financial year.
Besides merchandise exports, the country also exported services worth $76.10 billion, he said. Under the review of the trade policy, the Vishesh Krishi and Gram Udyog Yojana for promoting agriculture exports has been expanded to include soyabean and coconut oil as well as food preparations such as soups.
The government also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then, Nath said.
Further, the Focus Product and Focus Market schemes has been expanded to include additional items and 16 more countries. The corpus of Focus Product scheme has been increased to Rs 1,000 crore from Rs 650 crore last fiscal.
In a bid to encourage SEZs, Nath said, developers and co-developers of these zones would be covered under duty refund schemes