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Service tax input credit

Shikha Bajaj (CA ) (433 Points)

08 March 2012

Can a private limited company ( An exporter of service) avail input tax credit (refund) if it gets registered under service tax act? If yes, please provide the relevant notification/circular details?

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4 Replies

Shikha Bajaj (CA ) (433 Points)
Replied 09 March 2012

Anyone please reply to above query. A Private limited company is providing cloud hosting services to clients in US. Are these sevices taxable under service tax? If yes, then can it claim refund of service tax if it gets registered under service tax act?

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Prasad (Sr. Manager) (617 Points)
Replied 09 March 2012

Firstly your question of Refund / Input credit - Please refer export of services rules 2005.

If I understand your question right - The service is provided outside India (in US), is it through the Indian entity or an entity registered in the US.

Please do write how the Indian entity is involved in the transcation without which it would be difficult to answer this question

Shikha Bajaj (CA ) (433 Points)
Replied 09 March 2012

Service is provided by an Indian entity.

Rakshit (practising) (338 Points)
Replied 10 March 2012

Irrespective of exporter/non- exporter, any provider of taxable service is allowed cenvat credit under Rule 3(1) of the Cenvat Credit Rules, 2004, if registered.

Raksh*t Verma 008800615751.