Paresh (Final C.A. Student) (92 Points)
16 September 2011Hello,
My query is whether Export of Goods done under Rule 18 of CER (under rebate claim) can be considered as Exempted Goods
At the same time services exported under Rule 5 (under rebate claim) of Export of Service Rules, 2005 be considered as Exempted Service
Thanks in advance
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 16 September 2011
unless the goods are published in CETA as exempted or zero rated its not exempted goods,
export under rule 18 or 19 ensures the placement of goods out of indian territory and hence the excise duty is not charable but its taxable if placed within india, for transitional movement the procedcure of ARE-1 is followed, to ensure that goods has been placed in real out of indian territory.
regarding service tax, as the services are not "goods to be cleared" so the sealing and despatch with inditity marks is not possible, hence the payment procedure is benchmark for export of services, if services are exported out of indian teritory and payment is received in convertible foreign exchange, then such services can not be taxed with service tax as service tax has its geographical limits within indian terrritory (excluding J&K).
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 17 September 2011
Export of goods without duty or under rabte scheme cannot be considered as exempted goods. If it bears nil rate of duty as per CETA , then it is exempted goods.
Ram kr.
(Buisness)
(883 Points)
Replied 25 September 2011
Can we claim excise duty under rule 18 alongwith recent announce duty drawback scheme in replace of depb scheme.
Thanks
CAclubindia
