Amendments to ease export tax norms likely

The government today notified six-point draft rules regarding export of services to fulfil a legislative requirement proposed in the Finance Bill. A suitable amendment has been proposed in the Bill to enable the government to make rules defining export of taxable service, and providing exemption to such exports and rebate of tax paid or payable on exported taxable services and their inputs.

According to the draft rules, any service provided in relation to export of goods would be treated as export and specified services pertaining to immovable property would be considered as exports, if the property was outside India. It said in case of specified services, involving physical activity, performed abroad would be treated as exports.

‘‘To avoid disputes and for the sake of simplicity, even if such a service is partly performed outside India, it shall be treated as export of service,’’ the release added.