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Exemption of Tax on Export of Service

priyanka (manager) (109 Points)

04 June 2008

Hallo to All

> I have one querry :: My Auditee is an 100 % Export Service Provider

> Has got an exemption on export of said service in previous service and now not laible to pay service tax on export of this service.

> But been taking tax credit on input service used in this regard.

Question :: Now will he be entitled to claim credit of tax on the said input service or to claim it as an expense or to claim refund ????

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5 Replies

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 04 June 2008

He cannot claim it as input credit.

(Guest)

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(Guest)

this question query was published in joournal

one article is there this was published in icai students journal ucan verify and u get full details

cashekar (Chartered Accountant) (133 Points)
Replied 10 June 2008

With regard to the query,

there are 2 options, you can go for refund under Rule 5 or else you can go for rebate under Notification 11/2005. Or you can go for a setoff of this input credit against domestic tariff area clearance or output service tax payable.

MAHESH DURGA (CA) (20 Points)
Replied 03 December 2008

incase of 100% EoU, scope for set off of input service tax on out tax will not be there. Hence, you can go for refund procedure as per notification no.12/2005, which requires prior intimation to service tax dept. for each export and claiming input service tax subsequently in prescribed form.