export of services
This query is : Resolved
09 December 2009
A US based staffing company
(this company helps it's clients to hire appropriate candidates for vacant places) is outsourcing a part of its recruitment process to it's fully owned indian subsidiary. The indian subsidiary is claiming refund of service tax paid by it on input services (which were rent paid and maintainance charges paid to contractor). The indian company (fully owned subsidiary) is submitting copy of FIRC & invoice raised to it's parent company, as a proof of export but the
Revenue is finding this insufficient.
My questions are:
1. Under which category the recruitment services fall under section 65 of the Service Tax.
2.What else the subsidiary co. can give to prove that indeed there was an export and the services were USED OUTSIDE INDIA.
(this company helps it's clients to hire appropriate candidates for vacant places) is outsourcing a part of its recruitment process to it's fully owned indian subsidiary. The indian subsidiary is claiming refund of service tax paid by it on input services (which were rent paid and maintainance charges paid to contractor). The indian company (fully owned subsidiary) is submitting copy of FIRC & invoice raised to it's parent company, as a proof of export but the
Revenue is finding this insufficient.
My questions are:
1. Under which category the recruitment services fall under section 65 of the Service Tax.
2.What else the subsidiary co. can give to prove that indeed there was an export and the services were USED OUTSIDE INDIA.
Madhukar N Hiregange
(Expert)
11 December 2009
The refunds are being refused for many frivalous reasons.
The mails sent to US reporting compliance should indicate that the service is provided from India and utilised outside India.
Maybe aletter confirming that the US co is actually using the services outside India may also help.
Once you submit that they may come up with another reason to deny the refund.
The mails sent to US reporting compliance should indicate that the service is provided from India and utilised outside India.
Maybe aletter confirming that the US co is actually using the services outside India may also help.
Once you submit that they may come up with another reason to deny the refund.
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