Refund Claim of Serv Tax by 100%EOU
This query is : Resolved
17 December 2009
dear sir,
we are a 100% EOU. We have ECC no. We avail various services & pay service tax on bills, viz., courier bill, tel & mobile bills, Legal & Prof. fees, Rep & Maint. bill, general insurance etc. pl. let me know (1) can we claim refund of all these service tax paid - even if we do not avail cenvat credit - as our main raw material is non excisable goods, nor charge excise on export bill (being 100% EOU) ?
if yes, (2) let me know the procedure and what records are to be kept for input service tax credit ?
thanks in advance.
anckoor.
we are a 100% EOU. We have ECC no. We avail various services & pay service tax on bills, viz., courier bill, tel & mobile bills, Legal & Prof. fees, Rep & Maint. bill, general insurance etc. pl. let me know (1) can we claim refund of all these service tax paid - even if we do not avail cenvat credit - as our main raw material is non excisable goods, nor charge excise on export bill (being 100% EOU) ?
if yes, (2) let me know the procedure and what records are to be kept for input service tax credit ?
thanks in advance.
anckoor.
17 December 2009
100% EOU is entitled to take Cenvat credit on the duty of the input service and when they are not in a position to utilize the same, they are entitled for the benefit of the refund under Rule 5 of the Cenvat Credit Rules, 2004
Notification No. 05/2006 - Central Excise (N.T.)
Procedure
G.S.R. (E) In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004 (hereinafter referred to as the ‘said rules’), and in supercession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.11/2002 - Central Excise (NT), dated 1st March, 2002, published in the Gazette of India Extraordinary, vide number G.S.R. 150(E), dated 1st March, 2002, the Central Government hereby directs that refund of CENVAT credit shall be allowed in respect of :
(a) input or input service used in the manufacture of final product which is cleared for export under bond or letter of undertaking;
(b) input or input service used in providing output service which has been exported without payment of service tax,
subject to safeguards, conditions and limitations, set out in the Appendix to this notification.
Appendix
1. The final product or the output service is exported in accordance with the procedure laid down in the Central Excise Rules, 2002, or the Export of Services Rules, 2005, as the case may be.
2. The claims for such refund are submitted not more than once for any quarter in a calendar year
Provided that where,-
(a) the average export clearances of final products or the output services in value terms is fifty percent or more of the total clearances of final products or output services, as the case may be, in the preceding quarter; or
(b) the claim is filed by Export Oriented Unit, the claim for such refund may be submitted for each calendar month.
3. The manufacturer or provider of output service, as the case may be, submits an application in Form A annexed to this notification to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, in whose jurisdiction,-
(a) the factory from which the final products are exported is situated, along with the Shipping Bill or Bill of Export, duly certified by the officer of customs to the effect that goods have in fact been exported; or
(b) the registered premises of the service provider from which output services are exported is situated, along with a copy of the invoice and a certificate from the bank certifying realization of export proceeds
4. The refund is allowed only in those circumstances where a manufacturer or provider of output service is not in a position to utilize the input credit or input service credit allowed under rule 3 of the said rules against goods exported during the quarter or month to which the claim relates (hereinafter referred to as ‘the given period’).
5. The refund of unutilised input service credit will be restricted to the extent of the ratio of export turnover to the total turnover for the given period to which the claim relates i.e.
Maximum refund £ Total CENVAT credit taken on input services during the given period × export turnover ÷ Total turnover
Illustration: If total credit taken on input services for a quarter = Rs. 100
Export turnover during the quarter = Rs 250
Total Turnover during the quarter = Rs 500
Refund of input service credit under Rule 5 of the CENVAT Credit Rule, during the quarter £ 100*250/500 i.e. Rs 50
Explanation: For the purposes of condition no.5,-
1. “Export turnover†shall mean the sum total of the value of final products and output services exported during the given period in respect of which the exporter claims the facility of refund under this rule.
2. “Total turnover†means the sum total of the value of,-
(a) all output services and exempted services provided, including value of services exported;
(b) all excisable and non excisable goods cleared, including the value of goods exported;
(c) The value of bought out goods sold,
during the given period.
6. The application in Form A, along with the prescribed enclosures and the relevant extracts of the records maintained under the Central Excise Rules, 2002, CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994,in original, are filed with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, before the expiry of the period specified in section 11B of the Central Excise Act, 1944(1 of 1944).
7. The refund of excise duty or service tax is allowed by the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be.
ANNEXURE
FORM ‘A’
(See paragraph 3 of the Appendix)
Application for refund of CENVAT credit under rule 5 of the CENVAT Credit Rules, 2004
(Refund relating to the given period i.e. quarter or month ________)
To
The Deputy Commissioner / Assistant Commissioner of Central Excise,
Sir,
I/We have exported, the final products or output services of under-mentioned description, value, quantity to _________ during the given period. I/We am/are not in a position to utilize the CENVAT credit of duty/service tax taken,-
(a) on inputs or input services used in the manufacture of final products cleared for export under bond or letter of undertaking;
(b) on input or input services used in providing output services exported without payment of service tax,
and such credit being allowed under rule 3 of the CENVAT Credit Rules, 2004, for payment of duty in respect of final products cleared for home consumption or for export on payment of duty or for payment of service tax on output services during the given period. I/We request that refund of such credit for the given period may be granted. The following particulars/enclosures are being provided/enclosed by me/us for this purpose.
(A) PARTICULARS OF FINAL PRODUCTS OR OUTPUT SERVICES EXPORTED DURING THE GIVEN PERIOD:-
(i) Description:-
(a) Final Products __________
(b) Output Services ________
(ii) Quantity (in units) in case of final products _________
(iii) Value:-
(a) Final products_______________________
(b) Output Services__________________________
(B) PARTICULARS OF INPUTS OR INPUT SERVICES USED IN THE MANUFACTURE OF FINAL PRODUCTS OR USED IN PROVIDING OUTPUT SERVICES DURING THE GIVEN PERIOD:-
(i) Description:-
(a) Inputs __________
(b) Input Services ________
(ii) Quantity (in units) in case of inputs _________
(iii) Amount of credit taken on:-
(a) Inputs__________________
(b) Input Services_______________
(C ) TOTAL TURNOVER DURING THE GIVEN PERIOD:-
(i) The value of all output services and exempted services provided, including value of services exported:-
(ii) The value of all excisable and non excisable goods cleared, including the value of goods exported:-
(iii) The value of bought out goods sold:-
(D) ENCLOSURES:-
(i) Copy of the relevant Shipping Bills or Bills of Export duly certified by the officer of customs to the effect that the goods have in fact been exported (in case of final products).
(ii) Copy of invoices.
(iii) Certificate from the bank certifying realization of export proceeds (in case of export of output services).
(iv) Relevant extracts of the records maintained under the Central Excise Rules, 2002, the CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994, as the case may be, evidencing taking of CENVAT credit, utilization of such credit in payment of excise duty or service tax and the balance unutilized credit during the given period.
(E) AMOUNT OF REFUND CLAIMED:-
Rs (in figures and in words)_____________________________
I/ we opt for/ do not opt for the facility of the refund amount being credited directly in my /our bank account details as furnished below
1) Account Number
2) Name of the Bank
3) Branch (with address)
I / We certify that the aforesaid particulars are correct and I / we am / are the rightful claimant(s) to the refund of excise duty or service tax, as the case may be, due thereon which may be allowed in my/ our favour.
I/We declare that no separate claim for rebate of duties or service tax in respect of excisable materials used in the manufacture of the goods or output service covered by this application has been or will be made under the Customs and the Central Excise Duties Drawback Rules, 1971 or under claim for rebate under the Central Excise Rules, 2002 or the Export of Services Rules, 2005.
I/We declare that we have not filed /will not file any other claim for refund under rule 5 for the same quarter or month to which this claim relates.
Signature and full address of the claimant (s)
___________________________________________________________________
Refund Order No. ____________
Date ____________________
The claim of Shri /Messrs. _______________ has been scrutinized with the relevant Shipping Bills or Bills of Export/ invoices/ certificate from Bank certifying realization of export proceeds and refund of Rs______________(Rs._________) is sanctioned.
Date__________
Deputy Commissioner / Assistant Commissioner of Central Excise___________
Forwarded to-
1. The Chief Accounts Officer, Central Excise, for information and necessary action.
2. The Commissioner of Central Excise __________________
Date_____________
Deputy / Assistant Commissioner of Central Excise___________
____________________________________________________________________
Passed for payment of Rs _________________(Rs.____________). The amount is adjustable under Head "0038-Union Excise Duties-Deduct Refunds/ 0044- Service tax-Deduct Refunds".
Date___________
Chief Accounts Officer
____________________________________________________________________
Cheque No.___________dated_____________issued in favour of Shri/Messrs ___________________ for Rs _________ (Rs.__________ _).
Date___________
Chief Accounts Officer
____________________________________________________________________
Received Cheque No. ________________ dated ________________ for Rs. _____________________ (Rs.______________).
Dated_________________
Signature of claimant.
Notification No. 05/2006 - Central Excise (N.T.)
Procedure
G.S.R. (E) In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004 (hereinafter referred to as the ‘said rules’), and in supercession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.11/2002 - Central Excise (NT), dated 1st March, 2002, published in the Gazette of India Extraordinary, vide number G.S.R. 150(E), dated 1st March, 2002, the Central Government hereby directs that refund of CENVAT credit shall be allowed in respect of :
(a) input or input service used in the manufacture of final product which is cleared for export under bond or letter of undertaking;
(b) input or input service used in providing output service which has been exported without payment of service tax,
subject to safeguards, conditions and limitations, set out in the Appendix to this notification.
Appendix
1. The final product or the output service is exported in accordance with the procedure laid down in the Central Excise Rules, 2002, or the Export of Services Rules, 2005, as the case may be.
2. The claims for such refund are submitted not more than once for any quarter in a calendar year
Provided that where,-
(a) the average export clearances of final products or the output services in value terms is fifty percent or more of the total clearances of final products or output services, as the case may be, in the preceding quarter; or
(b) the claim is filed by Export Oriented Unit, the claim for such refund may be submitted for each calendar month.
3. The manufacturer or provider of output service, as the case may be, submits an application in Form A annexed to this notification to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, in whose jurisdiction,-
(a) the factory from which the final products are exported is situated, along with the Shipping Bill or Bill of Export, duly certified by the officer of customs to the effect that goods have in fact been exported; or
(b) the registered premises of the service provider from which output services are exported is situated, along with a copy of the invoice and a certificate from the bank certifying realization of export proceeds
4. The refund is allowed only in those circumstances where a manufacturer or provider of output service is not in a position to utilize the input credit or input service credit allowed under rule 3 of the said rules against goods exported during the quarter or month to which the claim relates (hereinafter referred to as ‘the given period’).
5. The refund of unutilised input service credit will be restricted to the extent of the ratio of export turnover to the total turnover for the given period to which the claim relates i.e.
Maximum refund £ Total CENVAT credit taken on input services during the given period × export turnover ÷ Total turnover
Illustration: If total credit taken on input services for a quarter = Rs. 100
Export turnover during the quarter = Rs 250
Total Turnover during the quarter = Rs 500
Refund of input service credit under Rule 5 of the CENVAT Credit Rule, during the quarter £ 100*250/500 i.e. Rs 50
Explanation: For the purposes of condition no.5,-
1. “Export turnover†shall mean the sum total of the value of final products and output services exported during the given period in respect of which the exporter claims the facility of refund under this rule.
2. “Total turnover†means the sum total of the value of,-
(a) all output services and exempted services provided, including value of services exported;
(b) all excisable and non excisable goods cleared, including the value of goods exported;
(c) The value of bought out goods sold,
during the given period.
6. The application in Form A, along with the prescribed enclosures and the relevant extracts of the records maintained under the Central Excise Rules, 2002, CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994,in original, are filed with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, before the expiry of the period specified in section 11B of the Central Excise Act, 1944(1 of 1944).
7. The refund of excise duty or service tax is allowed by the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be.
ANNEXURE
FORM ‘A’
(See paragraph 3 of the Appendix)
Application for refund of CENVAT credit under rule 5 of the CENVAT Credit Rules, 2004
(Refund relating to the given period i.e. quarter or month ________)
To
The Deputy Commissioner / Assistant Commissioner of Central Excise,
Sir,
I/We have exported, the final products or output services of under-mentioned description, value, quantity to _________ during the given period. I/We am/are not in a position to utilize the CENVAT credit of duty/service tax taken,-
(a) on inputs or input services used in the manufacture of final products cleared for export under bond or letter of undertaking;
(b) on input or input services used in providing output services exported without payment of service tax,
and such credit being allowed under rule 3 of the CENVAT Credit Rules, 2004, for payment of duty in respect of final products cleared for home consumption or for export on payment of duty or for payment of service tax on output services during the given period. I/We request that refund of such credit for the given period may be granted. The following particulars/enclosures are being provided/enclosed by me/us for this purpose.
(A) PARTICULARS OF FINAL PRODUCTS OR OUTPUT SERVICES EXPORTED DURING THE GIVEN PERIOD:-
(i) Description:-
(a) Final Products __________
(b) Output Services ________
(ii) Quantity (in units) in case of final products _________
(iii) Value:-
(a) Final products_______________________
(b) Output Services__________________________
(B) PARTICULARS OF INPUTS OR INPUT SERVICES USED IN THE MANUFACTURE OF FINAL PRODUCTS OR USED IN PROVIDING OUTPUT SERVICES DURING THE GIVEN PERIOD:-
(i) Description:-
(a) Inputs __________
(b) Input Services ________
(ii) Quantity (in units) in case of inputs _________
(iii) Amount of credit taken on:-
(a) Inputs__________________
(b) Input Services_______________
(C ) TOTAL TURNOVER DURING THE GIVEN PERIOD:-
(i) The value of all output services and exempted services provided, including value of services exported:-
(ii) The value of all excisable and non excisable goods cleared, including the value of goods exported:-
(iii) The value of bought out goods sold:-
(D) ENCLOSURES:-
(i) Copy of the relevant Shipping Bills or Bills of Export duly certified by the officer of customs to the effect that the goods have in fact been exported (in case of final products).
(ii) Copy of invoices.
(iii) Certificate from the bank certifying realization of export proceeds (in case of export of output services).
(iv) Relevant extracts of the records maintained under the Central Excise Rules, 2002, the CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994, as the case may be, evidencing taking of CENVAT credit, utilization of such credit in payment of excise duty or service tax and the balance unutilized credit during the given period.
(E) AMOUNT OF REFUND CLAIMED:-
Rs (in figures and in words)_____________________________
I/ we opt for/ do not opt for the facility of the refund amount being credited directly in my /our bank account details as furnished below
1) Account Number
2) Name of the Bank
3) Branch (with address)
I / We certify that the aforesaid particulars are correct and I / we am / are the rightful claimant(s) to the refund of excise duty or service tax, as the case may be, due thereon which may be allowed in my/ our favour.
I/We declare that no separate claim for rebate of duties or service tax in respect of excisable materials used in the manufacture of the goods or output service covered by this application has been or will be made under the Customs and the Central Excise Duties Drawback Rules, 1971 or under claim for rebate under the Central Excise Rules, 2002 or the Export of Services Rules, 2005.
I/We declare that we have not filed /will not file any other claim for refund under rule 5 for the same quarter or month to which this claim relates.
Signature and full address of the claimant (s)
___________________________________________________________________
Refund Order No. ____________
Date ____________________
The claim of Shri /Messrs. _______________ has been scrutinized with the relevant Shipping Bills or Bills of Export/ invoices/ certificate from Bank certifying realization of export proceeds and refund of Rs______________(Rs._________) is sanctioned.
Date__________
Deputy Commissioner / Assistant Commissioner of Central Excise___________
Forwarded to-
1. The Chief Accounts Officer, Central Excise, for information and necessary action.
2. The Commissioner of Central Excise __________________
Date_____________
Deputy / Assistant Commissioner of Central Excise___________
____________________________________________________________________
Passed for payment of Rs _________________(Rs.____________). The amount is adjustable under Head "0038-Union Excise Duties-Deduct Refunds/ 0044- Service tax-Deduct Refunds".
Date___________
Chief Accounts Officer
____________________________________________________________________
Cheque No.___________dated_____________issued in favour of Shri/Messrs ___________________ for Rs _________ (Rs.__________ _).
Date___________
Chief Accounts Officer
____________________________________________________________________
Received Cheque No. ________________ dated ________________ for Rs. _____________________ (Rs.______________).
Dated_________________
Signature of claimant.
Message likes :
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18 December 2009
The refund under Rule 5 is virtually far reaching and lucky are those who succeed in getting refund under this rule.
So alternatively refund of specified services used in export of goods may be sought under Notification No. 17/2009-ST dated 07.07.2009 which is more straightforward.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)
So alternatively refund of specified services used in export of goods may be sought under Notification No. 17/2009-ST dated 07.07.2009 which is more straightforward.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)
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