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Service tax on export commission

CA.Suman Saha (Partner) (32 Points)

15 January 2015

PLEASE REFER NOTIFICATION NO.27/2012-CE(N.T).. QUERRY IS THAT MY CLIENT(LTD.CO.) ACCOUNTED FOR EXPORT COMMISSION INCLUSIVE OF SERVICE TAX AND DEBITED TP P& L ON GROSS BASIS.. EVEN NOTES TO ACCOUNT IS SILENT REGARDING SUCH ISSUES..ANOTHER ISSUES IS THAT SUCH CLIENT EVEN DID NOT FILE ANY SERVICE TAX RETURN EARLIER BECAUSE OF NOT HAVING ANY SERVICE TAX LIABILITIES.

PLEASE GUIDE ME REGARDING SUCH ISSUES SO THAT SUCH COMPNAY CAN CLAIM FOR REFUND OF CENVAT CREDIT IN PROPER MANNER...

THANKS,

CA.SUMAN SAHA

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PRADEEP REDDY (CHARTERED ACCOUNTANT) (664 Points)
Replied 16 January 2015

Hi Suman,

In order to claim refund of cenvat credit under Rule 5 of CC Rules, 2004 read with notification 27/2012, assessee has to provide an evidence as to the maintenance of CENVAT credit receivable account and such a/c has to be debited while filing refund claim.

Since your client is not mainting separate account for service tax, they shall be guided to be maintain separate account and then file refund under RUle of CC Rules,2004.

Regarding non filing of service tax return, filing of return has nothing to do with making refund application under Rule 5 of CC Rules,2004 read with notifaction 27/2012