Import of services

Queries 523 views 2 replies

Aryan Mehta

Others

31 Points Posted on 29 July 2014

Dear All CA Experts,

Hello,

We are a small web hosting services company located in India. We have been constantly hearing about reverse charge mechanism of service tax applicable on import of services since July 2012 Stating " any taxable services provided or agreed to be provided by any person who is located in non-taxable territory and received by any person located in taxable territory " comes under " Import of Services " . According to this our company is paying 12.36% services tax on all the rental of servers ( Not physical available for operating, only can be controlled through virtual media) and services.

As our company holds more then 95% of foreign clients for whom the company is not charging any sort of service taxes and it comes under " Export of Services " for which service tax is exempted. Nearer to 5% only we have Indian clients.

My Queries

1) Are we applicable for any refund from Service Tax Department ?

2) If applicable on which prospective can we apply ?

3) What is the time limit to apply for refund ?

4) Is there any amendement as been done in Union Budget 2014 for " Import of Services " and applicable in our case.

Waiting for some swift and detailed answers from all CA experts.

Replies (2)

Hari

73 Points Posted on 30 July 2014

Refund of service tax paid on input services used for export is available under Notification No.39/2012 (service tax ) or Notification 27/2012 ( Excise NT ). Unless your activity falls under “online information and database access or retrieval services” , your activity is export of service and are eligible for refund. I believe it is not online information and daatabase access or retrieval based on the definition given below, would request some good thoughts on this.

“online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;

Aryan Mehta

Others

31 Points Posted on 01 August 2014

Thank you for replying sir with your knowledge regarding our queries. But your explaination does not give full information on my queries and still some queries are left out.

Originally posted by : Hari
	Refund of service tax paid on input services used for export is available under Notification No.39/2012 (service tax ) or Notification 27/2012 ( Excise NT ). Unless your activity falls under “online information and database access or retrieval services” , your activity is export of service and are eligible for refund. I believe it is not online information and daatabase access or retrieval based on the definition given below, would request some good thoughts on this. “online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;