Service Tax Exemption on Transporter's Services to exporter

This query is : Resolved

shoeb parwaiz (Querist)
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02 September 2010
Dear All,

I wanna know about the exemption of service tax to the exporter on transporter's services. How the exemption is availed & what paper work is done for this exemption. Does form Exp 1 & Exp 2 realted to this exemption? If yes please tell me how it is maintained. If any exporter send sample to abroad, will he get exemption on it or not? Is there two rules of service tax exemption for Cartage Inward & Cartage Outwards? If yes please explain it with any example.

Thanks,

Regards.

SANJAY TALATI

SANJAY TALATI (Expert)
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06 September 2010 Vide the Notification dtd. 07/07/2009, the the exemption had been granted to the exporter from payment of ST on the GTA. For that Form EXP 1 is to be filed with the dept. Further Form EXP 2 is to be filed alongwith the copies of the Invoices of Transporter on which the ST was payable but for the exemption and also other documents prescribed in the said notification wihin six months.

However, note that it is advisable to go for the exemption if u are an EOU , otherwise, continue to pay the ST on both Inward & Outward Transportation and take the Cenvat Credit of the ST on Inward Transportation.

This is because it would be difficult to identify the transportation to Domestic Sales/purhase and towards the Exports.