Sanjay Govil (Student) (111 Points)
19 June 2008I wish to know the procedure for obtaining refund of service tax paid in case of certain specified services attributable to export of goods as per latest government notification.
More specifically, what is the form and format for filing the claim for refund.
This query is for a manufacturing company which produces for the domestic market as well as international market.
Kapil
(CA)
(68 Points)
Replied 12 May 2012
for details you may refer notification no. 52/2011 dated 30.12.2011. The relavant formats and audit procedure is detailed therein.
Pinky Agarwal
(Chartered Accountant)
(426 Points)
Replied 14 May 2012
| Originally posted by : Sanjay Govil | ||
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I wish to know the procedure for obtaining refund of service tax paid in case of certain specified services attributable to export of goods as per latest government notification. More specifically, what is the form and format for filing the claim for refund. This query is for a manufacturing company which produces for the domestic market as well as international market. |
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The Notification No. 52/2011-ST dated 30.12.2011 issued by the Central Board of Excise and Customs had introduced this scheme in lines of the duty drawback procedure presently available to exporters, With the introduction of this new scheme, exporters now will have two options, such as:
1.Electronic Refund Through ICES System
To obtain the benefit under the new electronic STR scheme, which is based on the ‘schedule of rates’ prescribed under notification, the exporters have to follow the following procedure:-
1. An exporter, who wishes to obtain electronic STR, should express his option by mentioning in the shipping bill, chapter/subheading number at the first two digits or four digit levels specified in the schedule of rates, as applicable to the export goods declared in the shipping bill. Eligible refund amount of service tax paid on the specified services used for export of goods declared in the shipping bill will be calculated electronically by the ICES system, by applying the rate specified in the schedule against the said goods, as a percentage of the FOB value. No further refund shall be claimed in respect of the specified services, under specified procedure or in any other manner, including on the ground that the refund obtained is less than the service tax paid on the specified service.
For obtaining benefit under new electronic STR scheme, exporter –
2. The amount of refund will be directly credited to the bank account of the exporter, in the authorized bank branch at a Custom location or to any core banking enabled banking account of the exporter, in any branch/bank anywhere in the country (through the NEFT/RTGS). In respect of exporters who already have their bank accounts registered for receiving drawback amount, no new/separate account will be necessary for receiving service tax refund; but they should register their central excise registration or service tax code number with Customs ICES using Annexure-A Form given in notification.
2. Refund on the Basis of Documents
Exporters who do not like to obtain electronic STR on the basis of ‘schedule of rates’, but wish to opt for claiming STR on the basis of documents, through the Central Excise/Service Tax should declare chapter/subheading number as 9801 in the electronic Shipping Bill and will follow the same procedure as prescribed under Notification No. 52/2011-ST dated 30.12.2011, which supersedes notification no 17/2009-ST dated 07.07.2009.
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