10 June 2013
My Company has paid service tax @ 7.36%(12.36-5(R&D Cess)) on Royalty and Technical Services to abroad. My question is whether I can take it as my input service tax. And if possible when? Can I take it as a input for other services? If it is not possible can I get refund?
12 June 2013
ST is payable on receipt of services from outside India under reverse charge. See article on Place of Provision of Services Rules. When paying ST there is an exemption for setting off the R&D cess paid for such services. Credit under ST is permissible where the input service is used in providing taxable services. No refund unless one exports the services or goods.
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