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100% revenue in Foreign Currency - Business Aux Services

Service Tax (Legacy) 1499 views 2 replies

Friends

Please tell me the unit rendering the services (category - business auxilary services) having entire (100%) revenues in foreign currency. Is there any deductions or abatements on service tax for such units.

Pls tell me the section / rules of service tax act

Regds.

Vishwa

Replies (2)

The cenvat credit on capital goods used for such taxable services is available ( normally 14.42% presently); similarly if any inputs are used for the provision of the service there would be an eligibility of the excise duty credits; further the input services used in provding the services as well as those used for business wouldbe eligible for credit.

In your case since the credits cannot be utilised for paying either excise duty or service tax, the same could be refunded under Rule 5 of the cenvat Credit rules 2004. Alternatively the notification no. 11/2005 or 12/2005 issued under the Export of Services Rules 2005 would be available. A claim of refund is to be filed with the jurisdictional ST commissionerate and in due course of time after SCN issue, etc refund would be granted partially/ fully.

Thank you Madhukar for your advice.


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