Refund filing period_Service Tax on Input Services

Others 946 views 4 replies

Anil Chhabra

Manager

30 Points Joined June 2011

Hi,

My Organization is exporting 100% services and availing refund on service tax paid on Input services based on export of services and cenvat credit rules. The refund filed are duly attested by Statutory Auditors on quarterly basis before filing. However I observed that refund contains couple of input invoices which have been paid one or two years before refund filing process.

Just wanted to check if Section 11B of Central Excise Act (Limitation of one year from the date of payment of invoices) would be applicable on refund filing process?

Please suggest.

Thanks

Replies (4)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

such refunds would get scurtinized and get reduced by credit beyond 6 months.

Ganesh

111 Points Joined May 2010

Suggest you go through the circular Circular No. 120/01/2010-ST dated 19th Jan 2010 para 3.3 for eligibility. It doesn't restrict any CENVAT Credit for refund purpose.

Anil Chhabra

Manager

30 Points Joined June 2011

Thanks Ganesh.

Just a small clarification - Para 3.3 of circular mentions the refund as permissible, wherein there are no exports in previous quarter. However, in case there are exports in previous period (there might be cases wherein exports are less than 100% of total revenue or sales i.e there might be some domestic sales as well), can the exporter claim refund in subsequent quarter in which there is 100% export of services.

I personally see it as an incorrect practice, however auditors are certifying the statements on periodic basis and have not questioned same.

Please help!

Ganesh

111 Points Joined May 2010

Shifting of refund claim to the quarter where there is 100% export of services is not permissible.

If you have exports and domestic clearance in a quarter, the eligible refund will be proportionate to the export turnover over the total turnover during the quarter.

Hope this clarifies.

Ganesh