Input claim in case of export

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VISHAL GARG (Querist)

11 February 2016 Dear experts, our client is exporting services and using services in india as input.My question is whether they have to claim this input ST as refund only? Is it possible that they can claim input from ST payable india form other services?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

12 February 2016 The utilization of CENVAT Credit is possible to pay off any claim of output Service Tax, except Reverse Charge payments which necessarily have to be made through challans in cash (e-payment). Exported Services are exempted services. If the Input Services are specifically utilized for the exported services, then no CENVAT Credit can be claimed and the only option to claim refund of the Service Tax paid on inputs.

If the input services are common, then under Rule 6 (3A) pro-rata claim can be made and the balance claimed under Export refund.

From your query, it appears you have no output services subject to tax and hence there is no question of availing of CENVAT Credit.

VISHAL GARG

VISHAL GARG (Querist)

14 February 2016 Thanks Suresh ji for your valuable reply I know CCR on exempted services is not allowable but Export of service is not included in definition of exempted service for the purpose of CCR,2004.My client is also giving similar services in India also. whether my client can use the ST input specifically for export services with input of non export services.Actually my client do not want to get into long/complex procedures of refund since the margin of profit is lower so there is no use that we block our funds for lower profits. I refer cbec site for CCR, 2004 according to which i can utilise my CCR with other output service. kindly check this link and reply..https://www.cbec.gov.in/htdocs-cbec/excise/cxrules/new-cenvat-rules...

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