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We want to know if the notifications exempting certain servicesfrom service tax will hold good even after the passage of theBudget through Parliament and the coming into force of the newservice tax regime based on a negative list. With the passage of the Finance Bill through Parliament and ascentof the President, the Finance Act, 2012 has been enacted on 28thMay 2012. The said Act says that certain sections will come intoeffect on a date to be notified by the Central Government.Accordingly, the Government has issued notifications bringingvarious sections into force on various dates. Most of the majorchanges relating to service tax (especially, taxation of allservices, other than those covered under a negative list) will comeinto force from 1st July 2012. Most of the 88 exemptions in effectat present will continue till 30th June 2012 but by 1st July 2012will be either rescinded, being no more needed, or modified in somemanner, or merged in a mega notification, leaving the final tallyof exemptions to just 10. We refer to Para 8.4 of the Foreign Trade Policy (according torevised edition of 5th June 2012). It shows the benefits availableto different categories of supplies as mentioned in Para 8.2 ofFTP. There is no mention about supplies formodernisation/renovation of power plants or for expansion of powerplants. We have already contracted for such supplies on the basisof existing Policy. If the benefits are denied now, we will be putto loss. Is there any way out? Your position is similar to that of many suppliers to non-megapower projects, whose deemed export benefits were also abruptlywithdrawn. You may represent to the Director General of ForeignTrade through the Ministry for Power to extend deemed exportbenefits for supplies that are effected in accordance withcontracts that were finalised before the change in the Policy. Youmay also approach your customers (that is, the main contractors orproject owners) and try to re-negotiate the contracts. We are high quality suppliers, our products such as China Stainless Steel Coil Tubing , China Carbon Steel Boiler Tube for oversee buyer. To know more, please visits Stainless Steel U Bend Tube.
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