Multiple choice

In Foreign Trade Policy 2007-08, which of the following has been exempted from service tax?

  1. Export of services

  2. Services rendered in India but utilised by exporters

  3. Both the above

  4. Only banking and insurance services

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The 2007-08 Foreign Trade Policy aimed to boost exports by exempting both the export of services and services used by exporters from service tax. This move was designed to make Indian services more competitive in the global market. By reducing the tax burden, the government encouraged higher foreign exchange earnings.