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Business support services

Nutan N (Article Clerk) (24 Points)

27 April 2009

Hi ,

My name is Nutan, i have a query regarding Bussines Support Service. If an Assessee is providing Bussines Support Service and exporting the service and is not providing service within India and he is paying Service Tax on Rent of Building and On Telephone services.Can the assessee get refund of the service tax paid on the input services.If he can get the in refund then what is the procedure.

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Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 28 April 2009

BSS would be an export of services as long as the recepient is outside India, monies receivd in CFE + services used outside India ( benefit accrues outside).

Once it is export, the refund/ rebate is possible. Refund under Rule 5 of cenvta credit rules Reabte under notification 11 & 12 of 2005 in service tax.

Form R ( central excise) maybe used setting out the cliam and all the grounds on which claim is tobe made. To be accompanied by proof of export, FIRC, ST-3 filed disclosing required actions. A statement of credits though not reqd under law may also be provided to avoid further delays

Presnelty there is invariably a delay in processing the claims. Unless they are quite high ( over 5 lakhs) not recommneded at this time. Of course if claim made late only option of rebate on service tax paid ( utilisaing the credit) exports can be claimed. Other options closed.