Export of service rules 2005 (refund/rebate)

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Guest

Guest (Querist)

21 November 2008 Hi experts

Following is the para from the Export of service rule, 2005....

4. Export without payment of service tax.- Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax.

5. Rebate of service tax.- Where any taxable service is exported, the Central Government may, by notification, grant rebate of service tax paid on such taxable service or service tax or duty paid on input services or inputs, as the case may be, used in providing such taxable service and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification.1

Does it mean that export services can be provided and that is also without payment of the service tax at all.(for eligible services)Or whether service tax is required to be paid on export of service and later on we can apply for refund of the service tax paid on export of services.

And also clarify that whether service tax paid on all the input & input services utilised for providing the export services are eligible for Rebate/refund?

Thanks
Rohit

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 Notification No 12/2005 dt 19.4.05 provides for rebate of duty paid on excisable inputs or service tax and cess paid on taxable input services used in providing taxable services exported as per Rule 3 of the Export of service Rules, 2005.

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 Value of taxable services equal to value of goods and material sold is exempt provided there is documentary proof specifically indicating the value of the goods and material in terms of notification 12/2003. Here, a person availing this exemption should not avail cenvat credit on goods and materials, which are sold. In case cenvat credit is availed on goods and materials then the service provider is required to pay an amount equal to the credit availed before the sale of goods or materials.

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 The exemption is optional and the service provider cannot avail cenvat credit on input services, inputs and capital goods.

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 No Cenvat credit is availed on inputs or input services on which rebate is claimed.

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 Export of goods and refund of ST :

Notification no 41/2007 dt 6.10.07

The notification aims to grant benefits to exporters by allowing them a refund of ST in respect of selected services to an exporter of goods.

Guest

Guest (Querist)

21 November 2008 thanks sir,

but

Whether i have to raise invoice with service tax amount and accordingly have to pay it to govt. or i will not be required to pay service tax on export invoices (assuming all other conditions for exemptions are satisfied)??????????

Rohit

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 Exempted service - No payment

Rebate - Prior to export assessee should file a declaration giving specified information. Inputs and input services must be received under applicable invoices.

Guest

Guest (Querist)

21 November 2008 thanks a lot sir.

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