refund of service tax piad on input services by a maufacture

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tarsem (Querist)
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14 February 2009 Sir our client has setup a unit in rurkee where he got a tax holiday for excise,income tax,etc
now my question is can we claim refund of input service tax. Service are used to produce goods which will be sold in india duty free.

and again if we import services for such units in rurkee, willwe be liable to pay service tax under reverse system.

Rajesh Kumar

Rajesh Kumar (Expert)
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14 February 2009 If you are engaged in manufacturing activity only, which is exempted you are not eligible to take credit of central excise or service tax paid on inputs or input services. There is no provision of refund of these duties.
You are also liable to pay service tax on reverse charge system.