SERVICE TAX INPUT CREDIT AND STPI UNITS

This query is : Resolved

Sindhu (Querist)
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09 January 2008 CAN SOME PLS TELL ME IF STP UNITS CAN CLAIM THE SERVICE TAX INPUTS WHATEVER THEY PAY ON INPUT SERVICES??? CAN U PLS GIVE ME THE DETAIS AS TO WHICH ALL INPUTS CAN BE CLAIMED AS REFUND???
FURTHER IF IT CAN BE CLAIMED AS A CREIDT CAN YOU PLS GIVE ME THE DETAILS AS TO WHICH NOTIFICATION FROM THE DEPT NOTIFIES THE SAME????????

Dayal

Dayal (Expert)
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19 February 2008 The Software Technology Park (STP) scheme is a 100% export oriented scheme as such for STP Units which do not have domestic billings and who consequently cannot avail of input credit in terms of the service tax paid by them on any input service including rentals, such service tax paid by them can actually be claimed as a refund from the Government under Section 11B of the Central Excise Act, 1944.

Further, service tax is not applicable on export of services.

It is not known from your inquiry what benefit you intend to derive by taking cenvat credit, instead you can apply for refund of duty.

If you can please provide more inputs on your option of why you want to take the cenvat credit, when all your output is export.