Am i eligible for service tax refund ?

Queries 935 views 7 replies

I sell a certain product online and use Google to advertise my products online. All of my customers are based overseas and they pay me through their Credit Card. Google sends me Invoice at the end of each month and they charge Service Tax and Education Cess.

Now my question is "Am I liable to receive a refund of the service tax and education cess paid to Google India Pvt Limited?". If i do not advertise i will have no sales and advertisement directly affects my daily sale. Payment is received in the form of Convertible Foreign Exchange and i have no Indian Customer.

Raj

Replies (7)
It seems you are doing export of services.., and accordingly you are not liably to pay service tax but you can avail credit of input services (here service tax on advertisement), and so you are eligible to claim refund of ccr...
Ops.., not export of service... Export of goods.. :) Rest is same.. :)

The Service Tax Is Added To The Invoice Received From Google India Pvt Limited And The Entire Amount Is Paid To Google India Pvt Limited.

So now the question is "How can such refund be obtained" if of course i am entitled to refund?

 

Raj

The service of google is input service for your export activities. You can take cenvat credit and claim refund under Rule 5of CCR.

Refund under Indirect taxation is a cumbersome exercise. Unless your refund is substnatially high, do not bother. There are basically obstancles to be surmounted as under:

1. Application maybe rejected at first count

2. Next application - SCN would be issued as to why it should notbe rejected

3. In the adjudication- officer will agree orally - order will be against

4. In appeal youmay win.

5. Dept will go in appeal against the same.

The revenue has been grinding the pateiacne ofthe manufacturers/ service providers in this manner for quite some time now.

After such discouragment let me also state that miraculously out of turn refunds are being obtained. Also if amounts are alrge then there maybe no choice but tomake a refund claim. In due course it would I beleive result in money. 

Mr.Raj Malhotra You are rightly eligible for refund under cenvat credit as per rule 5 of ccr and there is no complication please register online and apply online your problem will be solved

 

Yes you can claim for ST refund... charged by google india.

Under rule 5 of CCR has been amended vide Notification No. 04/2006 - CE (N.T.)dated 14/03/2006)

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register