Export of goods
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 April 2015
if person is engaged in business of redymade graments and exporting also
then what will be service tax treatment
then what will be service tax treatment
23 April 2015
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.
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.
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 April 2015
sir i want to know what is relation between this notification and notification no. 11/2013 implemenation of MEIS
ONE PERSON WHO EXPORT goods who need to follow this or what
i am confused regarding service tax on export of goods and export of services
if in service tax return we directly show
gross income and claim amount deduction as a export of goods and services
and service tax liability nil
this way is correct
or what points we need to follow
please guide me in brief on this issue
ONE PERSON WHO EXPORT goods who need to follow this or what
i am confused regarding service tax on export of goods and export of services
if in service tax return we directly show
gross income and claim amount deduction as a export of goods and services
and service tax liability nil
this way is correct
or what points we need to follow
please guide me in brief on this issue
24 July 2024
Let's address your questions regarding notifications related to export incentives and the aspects of service tax on export of goods and services:
### 1. Notification No. 11/2013 - Implementation of MEIS
Notification No. 11/2013 refers to the Merchandise Exports from India Scheme (MEIS), which is a scheme under the Foreign Trade Policy (FTP) of India aimed at promoting export of goods. Here are the key points related to this notification:
- **Purpose**: MEIS provides rewards in the form of duty credit scrips to exporters for specified goods (tariff lines) exported to certain markets. These scrips can be used to pay duties on inputs, goods imported or domestic procurement of goods.
- **Eligibility**: Exporters of notified goods to specified markets as per the FTP are eligible to claim benefits under MEIS.
- **Implementation**: Notification No. 11/2013 specifies the rules, rates, and conditions under which MEIS benefits are granted.
### Relation to Other Notifications:
To understand the specific relation between Notification No. 11/2013 and other notifications, such as those concerning service tax or other export-related incentives, you would need to refer to each notification individually. Generally, notifications are issued under different laws or policies (e.g., Customs Act, Central Excise Act, Service Tax Act) and serve specific purposes related to those areas.
### 2. Service Tax on Export of Goods and Services
Service tax on export of services and export of goods is governed by different rules and provisions:
- **Export of Goods**: Typically, exports of goods are zero-rated under GST (Goods and Services Tax) in India. This means that the supply of goods for export is treated as a zero-rated supply, and exporters can claim a refund or rebate of the GST paid on inputs used to manufacture the exported goods.
- **Export of Services**: Similar to goods, export of services is also zero-rated under GST. Service providers exporting services are eligible for a refund or rebate of GST paid on inputs or input services used to provide the exported services.
### Service Tax Return for Exporters:
When filing service tax returns (now GST returns) for exports, here are the key points to consider:
- **Gross Income**: Include the gross income from both export of goods and export of services in your returns.
- **Claiming Exemptions/Deductions**: For export of goods, ensure you claim the necessary exemptions or refunds as per GST rules. For export of services, the same applies—claim exemptions/refunds for GST paid on inputs used to provide exported services.
- **Service Tax Liability**: If your exports are correctly classified as zero-rated supplies and you have claimed the appropriate exemptions/refunds, your service tax liability would be nil.
### Steps to Follow:
To ensure compliance and correct filing of returns:
1. **Classification**: Properly classify your supplies as export of goods or export of services under GST rules.
2. **Documentation**: Maintain proper documentation of export invoices, shipping bills (for goods), and relevant documents for export of services.
3. **GST Refunds**: Follow the procedures laid down by GST authorities for claiming refunds of GST paid on inputs used for exports.
4. **Consultation**: It's advisable to consult with a GST practitioner or tax expert to ensure compliance with GST laws and to optimize your benefits under export schemes like MEIS.
In summary, follow the specific rules under GST for zero-rated supplies (exports) and ensure you correctly file your returns to claim refunds or rebates on GST paid on inputs used for exports. This approach will help you in maintaining compliance and maximizing your export incentives under various schemes like MEIS.
### 1. Notification No. 11/2013 - Implementation of MEIS
Notification No. 11/2013 refers to the Merchandise Exports from India Scheme (MEIS), which is a scheme under the Foreign Trade Policy (FTP) of India aimed at promoting export of goods. Here are the key points related to this notification:
- **Purpose**: MEIS provides rewards in the form of duty credit scrips to exporters for specified goods (tariff lines) exported to certain markets. These scrips can be used to pay duties on inputs, goods imported or domestic procurement of goods.
- **Eligibility**: Exporters of notified goods to specified markets as per the FTP are eligible to claim benefits under MEIS.
- **Implementation**: Notification No. 11/2013 specifies the rules, rates, and conditions under which MEIS benefits are granted.
### Relation to Other Notifications:
To understand the specific relation between Notification No. 11/2013 and other notifications, such as those concerning service tax or other export-related incentives, you would need to refer to each notification individually. Generally, notifications are issued under different laws or policies (e.g., Customs Act, Central Excise Act, Service Tax Act) and serve specific purposes related to those areas.
### 2. Service Tax on Export of Goods and Services
Service tax on export of services and export of goods is governed by different rules and provisions:
- **Export of Goods**: Typically, exports of goods are zero-rated under GST (Goods and Services Tax) in India. This means that the supply of goods for export is treated as a zero-rated supply, and exporters can claim a refund or rebate of the GST paid on inputs used to manufacture the exported goods.
- **Export of Services**: Similar to goods, export of services is also zero-rated under GST. Service providers exporting services are eligible for a refund or rebate of GST paid on inputs or input services used to provide the exported services.
### Service Tax Return for Exporters:
When filing service tax returns (now GST returns) for exports, here are the key points to consider:
- **Gross Income**: Include the gross income from both export of goods and export of services in your returns.
- **Claiming Exemptions/Deductions**: For export of goods, ensure you claim the necessary exemptions or refunds as per GST rules. For export of services, the same applies—claim exemptions/refunds for GST paid on inputs used to provide exported services.
- **Service Tax Liability**: If your exports are correctly classified as zero-rated supplies and you have claimed the appropriate exemptions/refunds, your service tax liability would be nil.
### Steps to Follow:
To ensure compliance and correct filing of returns:
1. **Classification**: Properly classify your supplies as export of goods or export of services under GST rules.
2. **Documentation**: Maintain proper documentation of export invoices, shipping bills (for goods), and relevant documents for export of services.
3. **GST Refunds**: Follow the procedures laid down by GST authorities for claiming refunds of GST paid on inputs used for exports.
4. **Consultation**: It's advisable to consult with a GST practitioner or tax expert to ensure compliance with GST laws and to optimize your benefits under export schemes like MEIS.
In summary, follow the specific rules under GST for zero-rated supplies (exports) and ensure you correctly file your returns to claim refunds or rebates on GST paid on inputs used for exports. This approach will help you in maintaining compliance and maximizing your export incentives under various schemes like MEIS.
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