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.
CAclubindia
