Refund of Service tax to 100% EOU

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Pardeep Gupta (Querist)
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30 May 2011 Dear Experts,

We have a 100% EOU dealing in software testing and developments.We are not registered under service tax as we do export of services.I believe we can get the refund of service tax but not sure about the following points:

1.Of which kind of services we can get refund
2.If we make registration now can we get the refund of earlier paid taxes if yes then upto what year going backward we can claim
3.We are present ally working on rented premises and in the process of construction of our own building and that is partially complete. We are paying huge amount of service tax to architect, contractor consultant etc for their services. Can we also claim refund of this.

4.and last what is the process of claiming refund of service tax by an 100% EOU.

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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30 May 2011 Input services specified under Nit.17/2009 ST and used in relation to export qualify for refund. ST registration may not necessary for refund. Services mentioned in query no.3 are not eligible for refund.

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Pardeep Gupta

Pardeep Gupta (Querist)
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31 May 2011 Thanks a lot Sir, yet some more clarity is required in this relation.Firstly the nature of specified services is more in context of manufacturing unit like CHA services Packing etc but since we are in service sector I am not able to capture crux applicable for us out of it.I am agree that we can not get refund of service tax paid on services used in construction of building.Can we get refund for each and every service tax like that paid on telephone bills, on rent of the buildings, hotel bills,on lease line services used for export of software etc.

It would be really great if I can get a reply specifically for units in the business of Software Development.

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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31 May 2011 To the best of my knowledge, there is no scheme of refund specially meant for software exporters. You may get refund under Rule 5 of Cenvat Credit Rules if the subject services qualify for cenvat credit. But check with your Central excise authorities before you proceed to claim the same.

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