Refund of service tax paid while no obligation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2015 Dear Experts,

One of my relative who is providing services under "Business Axillary Services" have rendered Services during the current financial year as under :-

1 Services provided within India Rs 4.50 Lacs
2 Services Provided Out of India Rs 6.00 Lacs

Services provided out of India is meeting all the norms for Export of Services. In my view it is exempted service and hence he is not liable for Service tax.

However, my relative had paid service tax on the basis of local services provided by him (Rs 4.50 Lacs).

My Query is :-

1. Whether my relative will get refund of such service tax paid by him.

2. if not, whether he is required to pay service tax if his future services also.

3. do he require to intimate Department about his mistake.

Thanks in advance for Your valuable guidance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 January 2015 1. If paid service tax has been collected from service receiver you can't get refund.
2. No necessity to pay service tax in future service unless it exceeds 10 lakhs.
3. File return and also inform Dept.