Service Tax Refund - Exporters- Meaning of drawback on ST

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Nikhil Bakliwal (Querist)
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11 April 2009 We are exporters of agricultural commodities.
Our suppliers (service providers) are charging service tax on freight bills, Professional surveyors, commision by bank against realisation of export proceeds,etc.

As per notification no. 33/2008 dt 07.12.08 clause 'e' of notification 41/2007 has been omitted.
clause 'e' states service tax cannot be claimed if assessee is "availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995; "

CAN ANY 1 LET ME KNOW WHAT IS THE MEANING OF .............drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995........

HOW CAN DRAWBACK BE CLAIMED OF SERVICE TAX? drawback is claimed on goods exported & not on service tax.

my contact details are:
Cell - 9930361807 & nikhil@shlogamagro.com
Nikhil

Dayal

Dayal (Expert)
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11 April 2009 Drawback refers to the refund given to exporters on taxes like excise, Customs and service tax (from this year) levied on inputs in the manufacture of export products.

“The drawback rate will be a single composite rate. It will incorporate the burden of service tax on inputs. There will be no separate break-up of the service tax,”

The refund would, however, be proportionate to the extent of exports in the total turnover of the firm.

For instance, if 30% of a company’s turnover is from exports, it would get drawback of 30% of the service tax paid.

But this does not apply to your instance case as you have neither paid any excise nor you have claimed , so you can claim the refund of service tax and give a declaration to the effect that no refund has been claimed under any other provisions and this is the only calim for service tax

Nikhil Bakliwal

Nikhil Bakliwal (Querist)
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19 April 2009 Sir, Thanks for your reply. We are 100% export company. We claim duty drawabck when agri goods are exported without using Packing Material. Can we still claim refund of service tax. We have filed refund claim & AO says you cannot take refund coz u hv claimed duty drawback. the commodity which v export is exempted from excise duty. our personal meeting (beneficial to both) in this matter shall help me resolve this matter. Can you send your contact details. My contact details - 9930361807 (mumbai no.)

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