export of services

Save Share

This query is : Resolved

Amit Soni (Querist)

09 December 2009 A US based staffing company
(this company helps it's clients to hire appropriate candidates for vacant places) is outsourcing a part of its recruitment process to it's fully owned indian subsidiary. The indian subsidiary is claiming refund of service tax paid by it on input services (which were rent paid and maintainance charges paid to contractor). The indian company (fully owned subsidiary) is submitting copy of FIRC & invoice raised to it's parent company, as a proof of export but the
Revenue is finding this insufficient.
My questions are:
1. Under which category the recruitment services fall under section 65 of the Service Tax.
2.What else the subsidiary co. can give to prove that indeed there was an export and the services were USED OUTSIDE INDIA.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

11 December 2009 The refunds are being refused for many frivalous reasons.
The mails sent to US reporting compliance should indicate that the service is provided from India and utilised outside India.
Maybe aletter confirming that the US co is actually using the services outside India may also help.
Once you submit that they may come up with another reason to deny the refund.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now