Service Input Credit

As per the Export of Services Rules, services can be exported without payment of service tax means it is taxable service but no service tax is required to pay but not exempted.

In case of exempted services, we cannot take input credit of service tax paid on input services bought specifically used for exempted services.

So my doubt here is that, whether exported services are taxable or exempted and if it is taxable can we take input credit or we need to make an application for refund?

Suppose if it exempted, can we take input credit?

 

 

Replies (2)

Input credit is available/ refundable only if used in taxable services. Export of services is not an exempted service therefore credit available.

However if exempted services being exported then credit on the same would not be available. Ex. Software development services prior to May 2008. Input services used for software services exported prior to May 08 not available.

Thanks

So, we can take input credit even though no service tax is payable on export of services.

Please respond to my query below?

Online Advertising i.e advertising over the web from India for an advertising agent  situated outside India & consideration received in convertible foreign currency amounts export of services or not/

Whether such service is exempted export service or can be exported without payment of service?

 

 

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