Refund of service tax paid on export of goods.

The Government of India issued a Notification No. 41/2012-Service Tax Dt. 29.06.2012 to enable the Exporter of Goods to claim the SERVICE TAX what ever they have paid to effect the export of goods beyond the place of removal ( Factory ) to the port of export.

Now exporter of goods can get 100 % refund of service tax paid in the course of export on all the services used like Ageny Charge, Terminal Handling Charges ( THC ), Container Re-positioning Charges ( REPO ),  B/L Charges, C/O  Charges, Transportation, Stuffing Charges, Lashing Charges, Export Remittance Bank Collection Charges, Fumigation Charges, Loading Unloading Charges, ENS Filling, Seal Charges, Storage Charges, Survey Charges, Ground Rent Charges,  Wharfage Charges, Labor Charges etc …………..

Exporter needs to simply fill up the attached FORM A1 and submit to the excise division office.

There are two way to claim the service tax refund as below  :-

( A) Automatic Route :-  Under para 2 (d) of the above notification as under :-

2 (d) The exporter shall make a declaration in the electronic shipping bill or bill of export, to the effect that–

(i) The rebate of service tax paid on the specified services is claimed as a percentage of the declared Free On Board(FOB) value of the said goods, on the basis of rate specified in the Schedule;

(ii) No further rebate shall be claimed in respect of the specified services, under procedure specified in paragraph 3 or in any other manner, including on the ground that the rebate obtained is less than the service tax paid on the specified services;

(iii) conditions of the notification have been fulfilled;

 ( B ) Paper filling Route :- Under para 3 of the above notification as under :-

if you are paying more service tax with compare to specified % under para 2 as above, you must file paper refund claim under this para to get 100% refund and it is so easy as Automatic route as above.

for more details kindly log on to  

www.refundindia.com