modvat in case of export expenses

This query is : Resolved

CA Amrish Gupta (Querist)
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24 March 2009 OUR CLIENT IS EXPORTER AND CLAIM SERVICE TAX ON EXPENSES INCURRED FOR EXPORT. THERE IS ONE PARTY WHO SENDS US THE DEBIT NOTE IN LIEU OF BILL WHICH CONTAINS OCEAN FRIEGHT, CLEARING AND FORWARDING CHARGES ETC AND CHARGE SERVICE TAX ON IT, BUT ON SUCH DEBIT NOTE PARTY,S SERVICE TAX NUMBER IS NOT MENTION MOREOVER WE CAME TO NOW THAT PARTY IS NOT REGISTERD WITH DEPARTMENT FOR SOME AREAS OF SERVICES WHICH HE IS PROVIDING TO OUR CLIENT. BUT OUR CLIENT IS CLAIMING SUCH SERVICE TAX. SO MY QUESTION IS WAT R THE CONSEQUENCES OF SUCH NON DISCLOUSER OF SERVICE TAX NO. ON THE BILL CUM DEBIT NOTE AND WAT ARE THE CONSEQUENSES OF THAT SERVICES ON WHICH THE PARTY IS NOT REGISTERED WITH SERVICE TAX DEPARTMENT BUT HE CHARGING SERVICE TAX ON SUCH SERVICES.

Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)
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24 March 2009 If you are referring to claiming refund of service tax by your client, then no such refund can be claimed unless that has been paid into the government account by the party. IF the party claim service tax on thier bill and your client payto them, then it is absolutely at liability of the party to pay the same to the ogvernment account.Mentioning the service tax number on the bill raised may have to be explained on, but charging service tax from a client by the party who is not registered with service tax will not stand before the authority. When your client go for the refund a disclaimer certificate from the party is to be submitted with the department, which in the instance of the party not registered cannot issue to your party and eventually your party will not recieve the refund.