Rebate for Services, which are exported.
The Central Government vide Notification No. 9/2005
- Service tax, Dated March 3, 2005 had notified the
Export of Services Rules, 2005 applicable w.e.f 15
th March 2005. Primarily these Rules are issued to
exempt services, which are exported. Following the
basic notification no. 9/2005 the Central Government
has vide Notification No. 11/2005 and 12/2005 dated
19.04.2005 lays down the conditions and limitations
for the grant of rebate for export of services.
(A) Time Limit for claiming refund: Section 11B of
the Central Excise Act, 1994 is applicable to the service
tax provisions vide Section 83 of the service tax provision.
Thus, the time limit for claiming rebate is for excise
duty within one year from the date of export of services.
(B) Notification No. 11/2005 - where tax and cess is
paid on output services –
(i) Conditions and limitations:
(a) that the taxable service has been exported and
payment has been received in India in convertible foreign exchange;
(b) that the service tax and cess, rebate of which
has been claimed, have been paid on the taxable service exported;
(c) the amount of rebate of service tax and cess
admissible is not less than five hundred rupees;
(ii) Procedure:
(a) A claim shall be filed with the jurisdictional
Assistant Commissioner of Central Excise (AC)
or Deputy Commissioner of Central Excise (DC).
(b) Such application shall be accompanied by a
documentary evidence of receipt of payment
and payment of service tax and cess.
(c) A declaration that such taxable service for which
rebate of service tax and cess is claimed has been
exported along with the documentary evidence.
(d) The AC or DC of Central Excise if satisfied that
the claim is in order, shall sanction the rebate
either in whole or in part.
(C) Notification No. 12/2005 - where no credit is
taken and no tax and cess is paid on output services:-
(i) Conditions and limitations:
These are almost same as 11/2005 except that service tax has been paid on inputs, tax and cess is
paid on input services and no Cenvat credit has
been taken on such inputs or input services.
(ii) Procedure:
(a) The service provider prior to date of export of
taxable service shall file a declaration with AC
or DC describing the taxable service intended
to be exported with,
- descripttion, quantity, value, rate of duty and
the amount of duty payable on inputs actually required to be used in providing taxable
service to be exported.
- descripttion, value and the amount of service
tax and cess payable on input services actually required to be used in providing taxable
service to be exported.
(b) The AC / DC shall verify the correctness of the
declaration and if necessary may call for any
relevant information or samples of inputs. And
if satisfied that there is no likelihood of evasion of duty or service tax and cess he may
accept the declaration.
(c) The service provider shall,
- obtain the inputs to be used in providing
taxable service to be exported, directly from
factory or dealer registered under Central
Excise accompanied by invoices issued
under the Central Excise Rules, 2002
- receive the input services to be consumed in
providing taxable service and an invoice, a bill
or, as the case may be, a challan issued under
the provisions of Service Tax Rules, 1994.
(d) Presentation of rebate claim is same as under 11/2005
- A claim shall be filed with the jurisdictional
Assistant Commissioner of Central Excise
(AC) or Deputy Commissioner of Central
Excise (DC).
- Such application shall be accompanied by
input invoices and input service invoice,
bill or challan in respect of the claim.
- documentary evidence of receipt of payment against taxable service exported, payment of duty on inputs and service tax and
cess on input services used for providing
taxable service exported.
- declaration that such taxable service, has
been exported along with documents evidencing such export.
(e) The AC or DC of Central Excise if satisfied that
the claim is in order, shall sanction the rebate
either in whole or in part
CAclubindia
