service tax refund

This query is : Resolved

CA Rohin Arora (Querist)
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26 March 2009 hi..

there is a company which is registered with stpi and is 100 % eou.i didnt get registered with service tax earlier at the start of my operations.now i felt that i can claim refund for the input services paid by me to the vendors.for this i just applied for service tax registration.but now i came to know that i will not be able to claim refund for some reason whatever.

so if anyone can help me in this:
1. is service tax registration required for the service tax refund since i am exporter of services which are exempt from taxes under export of services rule 2005.
2. what form is required to be submitted for claiming the refund of service tax.
3. what procedure is to be followed to claim the refund.
4. most importantly can i claim refund for the previous quarters or months which have passed.

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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26 March 2009 The first one: yes, you have to register if your export services are taxable services. Since in the said rules it merely states that you can export without payment of tax. It means that your services are not exempted.
Second and third one: this is again required more clarity. Ex- if you paid service tax on export services then 11/2005 form is ASTR-1 or if you have paid service tax or excise duty paid on inputs, used in providing taxable services exported in such a cases Form ASTR-2 is applicable.
Fourth one: Yes, still you can get if you have paid taxes thereon. Since, the registration is merely compliances

hanumatha@gmail.com

CA Rohin Arora

CA Rohin Arora (Querist)
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27 March 2009 hi..

thanks for the reply.but i need to clarify few things.
1. the question was in regards to bpo which export services without charging service tax and it is exempted services.
2. we are paying service tax on input services and have to apply for the refunds on input tax paid.
3. you have mentioned astr-1 and 2. but that is for rebate of duty and not refund.

so plz check again.

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CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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01 April 2009 Would think you have misunderstood that the services which you are exporting are taxable services rather exempted services. Those services are rendered in India, are liable to service tax or exempted from service tax. If your answer is liable to service tax then you are eligible to claim refund otherwise you can not.
In this regard, assuming that your exporting taxable services without payment of service tax then you are eligible to claim refund under Rule 5 of CENVAT credit Rules, 2004 or Notification No. 12/2005 dated 19.04.2005 as the case may be.

Form A (under CENVAT credit Rule 5) and Form ASTR-2 (under Notification No. 12/2005) shall be used for claiming refund of service tax paid on inputs.