Government has started an automatic service tax refund facility to the exporters. With a view to streamline the procedure for refunds, the Ministry of Finance today linked it with electronic payment system and fixed the average rate at 0.03-0.2 per cent of the shipment value.

An official release said that the exporters will be allowed automatic refund of service tax as the refund system has been synchronised with the Electronic Data Interchange (EDI). The average rate of refund is in respect of 18 identified services used beyond the factory gate. This is being done to implement the simplified scheme. The scheme adds to the e-enabled service delivery to exporting community, limits public interface as well as reduces transaction costs in obtaining refunds.