Refund of service tax

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Sashikanta parida (Querist)
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20 February 2009 Dear Sir/madam,
Service tax return is compulsory for those who are comes under service tax applicability, but there are some company who are not come under service tax applicabilty and paid huge amount of service. can these company claim for service tax amt refund.

Dayal

Dayal (Expert)
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20 February 2009 Refund Under the Service Tax regulations can arise due to excess payment of tax or when service is exported out of India. Refund on Exports. On and with effect from March 14, 2006, the words “input service’ were inserted in Rule 5 of the Cenvat Credit Rules, 2004. By the
introduction of these words the doors to ‘refund’ of service tax were opened.

When any input service is used in-
a. manufacture of final product which is cleared for export under bond or letter of undertaking,
b. intermediate product cleared for export, or
c. providing output service which is exported, the manufacturer or the output service provider is allowed to use the service tax paid on such input service against the payment of excise duty on finished goods or against payment of service tax on output service.

If for any reason the above adjustment is not possible the said manufacturer or the output service provider can claim refund of the said input service tax.

However, refund cannot be claimed if drawback is allowed under the Customs and Central Excise Duties Drawback Rule, 1995 or a claim has been made for rebate of duty under the Central Excise Rules, 2002 or Export of Services Rules, 2005.

The application for Refund has to be made in Form-R, either on a monthly basis or quarterly basis. The said Form-R in duplicate shall be filed with the jurisdictional Assistant or Deputy Commissioner, as the case may be, along with the following enclosures:

1. Statement of Input Service Tax Paid for the Month/Quarter of ______ in the following format:
Sl.No.
Name of the Input Service Provider
Bill No and Date
Service Tax Registration No. of Input Service Provider
Net Value of the Bill
Service Tax
Education Cess
Total Value of the Bill
Date of Payment
Cheque No/Documentary Evidence
2. Copies of Certificate of Foreign Inward Remittance
3. Copies of Export Invoices
4. Copies of Input Service Invoices

After the refund application has been made, the jurisdictional Superintendent shall cause verification of the documents filed and after satisfying himself about the accuracy and correctness process the refund under section 11B of the Central Excise Act as made applicable
to Service Tax law in terms of section 83 of the Finance Act, 1994

The application has to be made to the jurisdictional Assistant or Deputy Commissioner, as the case may be.

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