Become a Govt. Certified GST Practitioner. Batch begins 18th Nov. Register Now!

Exemption of Tax on Export of Service

priyanka (manager) (109 Points)

04 June 2008

Hallo to All

> I have one querry :: My Auditee is an 100 % Export Service Provider

> Has got an exemption on export of said service in previous service and now not laible to pay service tax on export of this service.

> But been taking tax credit on input service used in this regard.

Question :: Now will he be entitled to claim credit of tax on the said input service or to claim it as an expense or to claim refund ????

Reply
Follow
Share

5 Replies

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 04 June 2008

He cannot claim it as input credit.

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

this question query was published in joournal

one article is there this was published in icai students journal ucan verify and u get full details

(Guest)

this question query was published in joournal

one article is there this was published in icai students journal ucan verify and u get full details

cashekar (Chartered Accountant) (133 Points)
Replied 10 June 2008

With regard to the query,

there are 2 options, you can go for refund under Rule 5 or else you can go for rebate under Notification 11/2005. Or you can go for a setoff of this input credit against domestic tariff area clearance or output service tax payable.

MAHESH DURGA (CA) (20 Points)
Replied 03 December 2008

incase of 100% EoU, scope for set off of input service tax on out tax will not be there. Hence, you can go for refund procedure as per notification no.12/2005, which requires prior intimation to service tax dept. for each export and claiming input service tax subsequently in prescribed form.