Service Tax & Refund

This query is : Resolved

chetan soni (Querist)
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18 June 2009 Hi All,

Please give the procedure to take the service tax refund on exported services.

My service are fully exported & used outside india. For this i used some input services. I want to know whether i can take the refund of service tax paid on input services.

Classification of my output service:
information technology software as per sec 65(105)(zzzze).

Please reply ASAP, its urgent. Its my third post, shall i considered that none of experts have knowledge on this issue.

Thanks in advance.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 June 2009 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 17th September, 2007.

Notification No.40/2007-Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in the Schedule (hereinafter referred to as specified services) received by an exporter and used for export of goods (hereinafter referred to as said goods), from the whole of the service tax leviable thereon under section 66 of the said Finance Act, subject to the following conditions, namely:-

(a) the exemption shall be claimed by the exporter of the goods for the specified services received and used by the exporter for export of the said goods;

(b) the exemption claimed by the exporter shall be provided by way of refund of service tax paid on the specified services used for export of the said goods;

(c) the exporter claiming the exemption has actually paid the service tax on the specified services;

(d) the exemption or refund of service tax paid on the specified services used for export of said goods shall not be claimed except under this notification.

2. The exemption contained in this notification shall be given effect to in the following manner, namely:-

(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the exporter and used for export of the said goods, and such person shall not be eligible to claim exemption for the specified services:

Provided that where the exporter of the said goods and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;

(b) the exporter shall claim the exemption by filing a claim for refund of service tax paid on specified services:

Provided that,-

(i) the manufacturer-exporter of the said goods shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture or warehouse, and

(ii) the exporter, other than a manufacturer-exporter, shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the registered office of such exporter,

(c) the claim for refund shall be filed on a quarterly basis, within sixty days from the end of the relevant quarter during which the said goods have been exported:

Provided that the said goods shall be deemed to be exported on the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962);

(d) the refund claim shall be accompanied by documents evidencing,-

(i) export of the said goods;

(ii) payment of service tax on the specified services for which claim for refund of service tax paid is filed;

(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used for export of said goods, refund the service tax paid on the specified services used for export of said goods:

Provided that where any refund of service tax paid on specified services used for export of said goods has been paid to an exporter but the sale proceeds in respect of the said goods have not been realised by or on behalf of the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.

Schedule

Sr. No.
Taxable Services

Classification under Finance Act, 1994
Description

(1)
(2)
(3)

1.
Section 65(105)(zn)
Services provided for export of said goods

2.
Section 65(105)(zzl)
Services provided for export of said goods

3.
Section 65(105)(zzp)
Services provided for transport of said goods from the inland container depot to the port of export

4.
Section 65(105)(zzzp)
Services provided for transport of said goods from the inland container depot to the port of export

[F.No.341/15/2007-TRU]

(G.G. Pai)

Under Secretary to the Government of India

chetan soni

chetan soni (Querist)
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19 June 2009 Mr. Ram Avtar Singh,

That means we can claim refund for only specified services given in schedule of this notification.

Please clarify, as we export software by softcopy of the product. All this will not be used for this.
We pay service tax on following services,
1. Office Rent
2. Internet connections
3. Professional fees for software development
4. Service tax on audit fees & transfer audit fees.

I want to claim all this as refund.

Please give me advice on this.

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chetan soni

chetan soni (Querist)
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14 July 2009 closed.