Seven new services under Service Tax net

With the Finance Bill 2008 receiving Presidential assent, Seven new taxable services will come under the Service Tax net w.e.f May 16. These new services include Information Technology, Software services, investment management services, ULIP, Internet Telecommunication services, stock exchange services, Commodity Exchanges and Clearing houses.

The revenue department has also extended the scheme of refund of service tax paid by exporters to three additional services, taking the total number of services for which service tax refund is available to exporters to 19.

Exporters can now get service tax refund on purchase or sale of foreign currency by authorised dealers or foreign exchange brokers.

However, exporters have to produce evidence to show that the services utilised by them for purchase or sale of foreign currency is related to export of goods.

So if you fall under any of the new services, remember to comply with the provisions of the Service Tax Act