Refund of Input tax for Exporter of IT Services?

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Sathish Karunakaran (Querist)
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08 January 2009 My client is an exporter of Information Technology Services. Finance Act, 2008, w.e.f 16.05.2008, made IT services subject to service tax levy. Shall the exporter of IT services can register
now under service tax act and can claim rebate of service tax paid on input services like, Rent on immovable property, telephone etc.? He is not liable to pay service tax on his output
services since the export of service rules,2005 has been complied. Kindly resolve this issue.

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Guest (Expert)

10 January 2009 ur client should get registered with service tax immediately.
u can claim service tax paid by u as refund only on those services which u have utilised in making/manufacturing goods/products/softwares exported by u.
it dosen't make any difference that u r an exporter and u r exempted by paying service tax.
still u can claim service tax refund paid by u on input services utilised by u.

Sathish Karunakaran

Sathish Karunakaran (Querist)
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10 January 2009 Thanks for the reply sir. But sir, as per Noftn. No.12/2005, an exporter of output services can claim rebate of service tax paid on input services provided his output services are listed in any three categories as per Rule 3 of Export of Service Rules,2005. When I have checked the rules, IT services [brought in to service tax levy by Fin. Act, 2008] is not listed in any of the category of Rule 3. Even the other new services like Stock Exc & Clearing & Processing services which are brought in to service tax net by Fin. Act, 2008 has been listed in the Rule 3. But IT services are excluded. Now in this situation can an exporter of IT services claim so?

For quick reference please visit "https://www.ieport.com/service_tax/notifications/notfns-2k5/st12-2k5.htm"