13 August 2009
Facts: A company (100% EOU)exports software services to foreign clients. As per rule 4 of export of service rules 2005, the company does not pay service tax on the export of services. As there is no output service tax "cenvat credit" on the services utilised is not taken to current assets in the balance sheet. Instead it is charged to the profit and loss account Now the question is: For claiming the refund of service tax on input services from the department IS IT NECESSARY THAT CENVAT CREDIT ACCOUNT HAS TO BE SHOWN IN THE BALANCE SHEET. In any case, the company would be submitting the export invoices, FIRCs, bankers certificate and vendors bills like courier, audit fees, to the department for claiming the refund of service tax on input services.
14 August 2009
Dear Mr. Arun Saboo, Thank You for your response. However I would like to know whether it is mandattory under service tax act / rule / notification. Or the department insists that the same is to be shown as an balance sheet item
CAclubindia
