KIND ATTN BARANI,
DT:-19.03.2010
YOUR QUERY:-
WHETHER THEY CAN CLAIM THE SERVICE TAX PAID UNDER GTA AS DUTY DRAWBACK. AS PER THE DRAWBACK RULES IT SAYS THAT ANY SERVICES USED FOR THE MANUFACTURE OF FINISHED GOODS CAN BE CLAIMED. I WANT TO KNOW WHETHER THIS GTA CAN BE CLAIMED AS DUYTY DRAWBACK OR NOT. PLS SUBSTANTIATE YOUR ANSWER.
PLEASE STUDY THIS NOTIFICATION OF POINT NO. 5, & 6
Recently the CBEC has issued a Notification No. 41/2007 to give further relief to exporter of goods subject to certain conditions:
1. The exemption shall be claimed by the exporter of the goods for the specified services received and used by the exporter for export of the said goods;
2. The exemption claimed by the exporter shall be provided by way of refund of service tax paid on the specified services used for export of the said goods;
3. The exporter claiming the exemption has actually paid the service tax on the specified services;
4. NO CENVAT CREDIT OF SERVICE TAX PAID ON THE SPECIFIED SERVICES USED FOR EXPORT OF SAID GOODS HAS BEEN TAKEN UNDER THE CENVAT CREDIT RULES, 2004;
5. THE SAID GOODS HAVE BEEN EXPORTED WITHOUT AVAILING DRAWBACK OF SERVICE TAX PAID ON THE SPECIFIED SERVICES UNDER THE CUSTOMS, CENTRAL EXCISE DUTIES AND SERVICE TAX DRAWBACK RULES, 1995;
6. EXEMPTION OR REFUND OF SERVICE TAX PAID ON THE SPECIFIED SERVICES USED FOR EXPORT OF SAID GOODS SHALL NOT BE CLAIMED EXCEPT UNDER THIS NOTIFICATION.
7. The person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the exporter and used for export of the said goods, and such person shall not be eligible to claim exemption for the specified services:
8. Where the exporter of the said goods and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;
9. The exporter shall claim the exemption by filing a claim for refund of service tax paid on specified services:
(i) the manufacturer-exporter of the said goods shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture or warehouse, and
(ii) the exporter, other than a manufacturer-exporter, shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;
10. The exporter who is not registered as an assessee under the Central Excise Act,1944 (1 of 1944) or the rules made there under, or the said Finance Act or the rules made there under, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;
11. The jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the exporter within seven days from the date of receipt of the said Form;
12. The claim for refund shall be filed on a quarterly basis, within sixty days from the end of the relevant quarter during which the said goods have been exported:
13. Provided that the said goods shall be deemed to have been exported on the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962);
14. The refund claim shall be accompanied by documents evidencing,-
(i) export of the said goods;
(ii) Payment of service tax on the specified services for which claim for refund of service tax paid is filed;
(iii) Wherever applicable, a copy of the written agreement entered into by the exporter with the buyer of the said goods, as the case may be;
15. The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used for export of said goods, refund the service tax paid on the specified services used for export of said goods;
16. Where any refund of service tax paid on specified services used for export of said goods has been paid to an exporter but the sale proceeds in respect of the said goods have not been realized by or on behalf of the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made there under, as if it is a recovery of service tax erroneously refunded.
Schedule
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Sr. No.
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Taxable Services
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Conditions
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Classification under Finance Act, 1994
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Descriptttion
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(1)
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(2)
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(3)
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(4)
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1.
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Section 65(105)(d)
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Services provided to an exporter by an insurer, including a re-insurer carrying on general insurance business in relation to insurance of said goods
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(i) document issued by the insurer, including re-insurer, for payment of insurance premium shall be specific to export goods and shall be in the name of the exporter.
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2.
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Section 65(105)(zn)
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Services provided for export of said goods
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-
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3.
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Section 65(105)(zzh)
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Services provided by a technical testing and analysis agency in relation to technical testing and analysis of said goods where such technical testing and analysis is required to be undertaken as per the written agreement between the exporter and the buyer of the said goods
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(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring testing and analysis of the said goods; and
(ii) the invoice issued by the service provider shall be specific to export goods and shall be in the name of the exporter.
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4.
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Section 65(105)(zzi)
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Services provided by an inspection and certification agency in relation to inspection and certification of export goods where such technical inspection and certification is required to be undertaken as per written agreement between the exporter and the buyer of the export goods
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(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring inspection and certification of the said goods; and
(ii) the invoice issued by the service provider shall be specific to export goods and shall be in the name of the exporter.
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5.
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Section 65(105)(zzl)
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Services provided for export of said goods
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-
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6.
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Section 65(105)(zzp)
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Services provided for transport of said goods from the inland container depot to the port of export
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-
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7.
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Section 65(105)(zzzp)
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Services provided for transport of said goods from the inland container depot to the port of export
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-
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PLEASE STUDY THIS NOTIFICATION OF POINT NO. 4, 5 & 6
No dbk/ cenvat credit avail in this condition
IF YOUR CLIENT IS SITUATED IN UTTARPARDESH AND HARYANA, IN BOTH STATES THE FREIGHT SUBSIDY IS AVAIL YOUR CLIENT.
“FREIGHT SUBSIDY” BENEFIT S AVAILABLE TO THE EXPORTER FIRM DESTINATION: - OFICE TO CUSTOM PORT.
ALL THE EXPERTS ARE REQUEST TO PLEASE YOUR VALUABLE REPLY CAN INCREASE OUR KNOWLEDGE.
ramesh.arti @ yahoo.co.in
CAclubindia
