how the service tax reduce burden on international trade

Dear Sivaprasad,  I will answer your question in simple words rather than going to in depth analysis. Like our household are dependent on  salary Governments depend on tax revenue. The taxes are direct and indirect taxes. The direct taxes are those that are paid in the form of income tax. The indirect taxes are those that are collected by government by way of excise duty and sales tax. If the direct taxes collection is very low, then government depend on indirect taxes and in the process the tax component of the products you consume will be high, discouraging you from consuming which will affect your international trade. Let us discuss another related economic aspect. Our country which was predominantly agriculture depended and manufacturing oriented had very less component of services. However, services component has increased over the years and at present we have reached more than 50%. While taxes on manufactured goods is tangible and easy to administer, taxes on services has lot of challenges such as finalizing the quantum and compliance. If the taxes on services are increased then then to that extent taxes on manufactured goods and imported products can be reduced in turn helping international trade. However, i have given a oversimplified account. For further information please visit www.globaledge.org to provide better insights. Wishing you all the best.