Eligibility of Service Tax on Exports

1834 views

Save Share

Join Us Follow Us Add as Source

Ganapathi

Head Finance

21 Points Posted on 24 November 2009

While exporting our manufactured goods, we utlize the services of the following agencies:

a. CHA for filing shipping documents in Indian customs

b. Freight forwarder

They charge service tax on their services. The query is entitlement of availing cenvat credit on service tax for the above services. The department's view is that the cenvat rules allow availing credit for the eligible services rendered inside the factory and hence raised demand for the credit availed by us.

We believe the eligibility extends upto to customs end as decided in the various tribunal and hence eligilbe for availing cenvat credit

kindly confirm if our above view is correct .

thanks

Replies (7)

chamatkaribaba

Practicing Indirect Tax

107 Points Posted on 24 November 2009

You can avail the cenvat credit on such services as they qualify to be 'input services' and hence, can ask for refund.

M.PORNIMA

Coimbatore

149 Points Posted on 07 December 2009

Thankslot pals !!!!!!!

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 09 December 2009

Please see Not. 17/2009 ST where the provision for refund of the same is available for exporters. It would be pointless to go for a dispute when there is an enabling provision.

Gautam Joshi

Partner

309 Points Posted on 04 January 2010

Hi Madhukar Sir,

Very Correct! What I dont understand in this notification is removal of refund claim by exporter other than manufacturer.

My question is can a company who gives it's goods on contract manufacturing, later purchases the same, fixes it’s group company’s logo on such goods and export it to global market avail benefit under this notification or department can argue that the company is just a manufacturer-cum-trader exporter and not a manufacturer-exporter.

Warm Regards.

neerajkumar(CAFA)

foreign consultant

74 Points Posted on 04 January 2010

dear sir

madhukar sir is right

Please see Not. 17/2009 and 18/2009 ST where the provision for refund & exemption services of the same is available for exporters. It would be pointless to go for a dispute when there is an enabling provision.

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 05 January 2010

Originally posted by : Gautam Joshi
	Hi Madhukar Sir, Very Correct! What I dont understand in this notification is removal of refund claim by exporter other than manufacturer. My question is can a company who gives it's goods on contract manufacturing, later purchases the same, fixes it’s group company’s logo on such goods and export it to global market avail benefit under this notification or department can argue that the company is just a manufacturer-cum-trader exporter and not a manufacturer-exporter. Warm Regards.

The company can claim the benefit inspite of the fact that it got the good manufactured by third party. Normally in such transactions the goods are exported directly from the JW premsies.

krishna iyer

Sr.Finance Manager

122 Points Posted on 22 July 2010

for refunds filed as per Notfn 17/2009 (manufacturer exporter), dept rejects refunds, and request us to prove there is no unjust enrichment. where is the question of unjust enrichment. we pay service tax on export services and avail refund as per notification. This service tax we have not collected from anobody.

seek your views.