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Refund of service tax

JINESH MEHTA (Chartered Accountant -Partner) (308 Points)

06 January 2014

Dear All,

I want certain clarification in following procedures.

One of my client is in into 100% export service provider. So he is not required to apply for Service tax number.

However he is having some services in which he has to pay service tax.

I think He will get benefit of Rule 5 of CCR 2004. (Refund of accumulated Cenvat Credit for export of services.)

Input services on which he is paying service tax : Renting of premises & Misc other Bills

I have following doubts with respect to above:

1. Whether service tax registration and return filling is compulsory to get refund of service tax?

2. Frequency of making application? Can we make application for previous years?

If you have any idea than please let me know.

Thanks & Regards,

C.A Jinesh Mehta I MBA, ACA
Mob : 9428431836

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2 Replies

Rameswar Subudhi (SERVICE) (17 Points)
Replied 07 January 2014

Dear Jinesh,

Yes your company can get Service tax refund benefit of Rule 5 of CCR 2004. (Refund of accumulated Cenvat Credit for export of services.)since it is an 100% EOU.

For getting refund from department you have to first get registered with the service tax department. and subsequently all the service tax requirements like filing of returns and payment of tax under Reverse charge mechanism are mendatory.

Regarding frequency- Service tax refund application can be filed one claim for each quarter and the claim should be filed with in one year from the date of invoice.

There are other requirements like documents to be filed and certificate from auditors. Please refer Notification No. 27 /2012-CE (N.T.)18th June, 2012.

For More clarification you can reach to me.

Thanks

Rameswar Subudhi

Chartered Accountant

9910257907

rameswara.ca @ gmail.com

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JINESH MEHTA (Chartered Accountant -Partner) (308 Points)
Replied 07 January 2014

Dear sir,

Thank you for prompt reply.

I have certain doubts as following in procedural parts in which I require your opinion.

A service provided is governed by Rule 3 of place of provision of rules & hence service tax is not required to be paid on export of services. In such case are we liable to pay service tax under reverse charge mechanism?
In your point No 2: Invoice means invoice of expenses in which service tax is paid?
Can we apply for claim for last year by taking registration and filling returns now?
Can you briefly tell me procedure for getting BRC? In some cases client is receiving payment through paypal account, can He can BRC for that also?

Thanks & Regards,

CA Jinesh Mehta, MBA, ACA

(M) 9428431836