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Refund of service tax on input

Amit Jain (Proprietor) (290 Points)

08 June 2011

Hi,

I deal in export of of garments. I hire labour from a contractor who charges service tax on bill.

Can i claim refund of service tax as input credit??

Please advise

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6 Replies

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 08 June 2011

If you are a manufacturer of garments, you can take cenvat credit of the said service tax and claim refund under Rule 5 of the CCR. Otherwise it does not qualifiry refund under Noti.17/2009.

Amit Jain (Proprietor) (290 Points)
Replied 08 June 2011

Nair Sir,

request if you could clarify little more..i export 100%

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 June 2011

in my opinion you can not claim input credit

wait for more replies

Prasad (Sr. Manager) (617 Points)
Replied 08 June 2011

COuld you be more clear with your question. may be you can give more details to answer.

Prachi Jindal (CA-Article-Final-Student) (129 Points)
Replied 10 June 2011

in the case of export CCR is available...its a only exeption for nt paying excise duty on output bt still gettin CCR...

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 10 June 2011

There is no excise duty on export of goods subject to procedures. But cenvat credit is admissible on the manpower supply service as it is an input service for manufacture of garments. This credit is refundable under Rule 5 of the CCR. Pl. discuss with your Asst. Commissioner.