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rebate of Service Tax under Notification 11/2005

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)

01 May 2009

I exported certain services to US based reciver.. raised invoices charging Service TAx on it and recieved the payment. I paid the service tax to the department ... But subsiquently I realized that the export of servie is exempt... Now I want to claim ythe rebate under Notification 11/2005, which provides provision to claim rebate/refund of service tax paid on export of service.

Is there any angle of unjust enrichment or any other objection whcih the department can raise on my application.

Please Advice... asap.

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1 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 02 May 2009

Once you have charged and collected the ST from the client the amount collected is to be paid to the central goivernment or retruned ot he cusotmer. The refund of the payment would notbe available. The only option is that the credits are available for adjustment with the ST payable and if in excess being carried forward and used for payment of ST for local services. The accumulated credit can also be applied for refund under Rule 5 or Notification 11 or 12 of 2005 for upcoming transactions.