Thanking Finance Minister Arun Jaitley for enhancing service tax refund from 0.18 to 0.21 per cent ahead of the budget 2015-16, Tirupur Exporters Association (TEA) president A Sakthivel said that this measure would also help increase competitiveness among knitwear garment exports.
The decision followed repeated requests in this regard by the TEA to Prime Minister Narendra Modi. The plea was also made in the Association’s pre-Budget Memorandum and separate representations to the Commerce Minister, Textiles minister and the Prime Minister, Sakthivel said in the release.
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The hike in service tax refund for export of knitwear garments will be effective from February 3, 2016. It is claimed to be a percentage of the declared Free On Board (FOB) value of the said goods, on the basis of rates specified in the schedule.
Sakthivel pointed out that the rate of Service Tax had increased from 12.36 per cent to 14 per cent in the last Union Budget, and then raised it again to 14.5 per cent on November 2015. The TEA had repeatedly asked for increasing the refund of Service Tax from 0.18 per cent to 0.5 per cent in all its memoranda.
