Service tax refund to exporter

ABC is a proprietorship firm. Firm has no lability to pay service tax and so has not applied service tax no. But firm wants to take refund of service tax paid on services used in export of goods like CHA, Insurance etc. But to my knowledge, Dept. will not issue refund without service tax no. I want to know under which service tax category form should register under service tax act, because firm is not providing any services and therefore there is no need to register under this act

Replies (6)

Based on your query it seems to me that your the firm is a trader of goods (If it is a manufacturer than apply for excise registration and export goods by following rule 19 of CER, avail credit of ST paid on removal of goods and than claim refund if you are unable to utilise credit). Trading is in negative list of service tax. Hence question of registration under ST is not at applicable i.e you can’t apply for registration. If you apply for registration under Bussiness auxiliary services still you can't apply for refund as these services are provided for provisioning of a service which is outside the ambit of service tax and hence CCR-2004 or the export rules made there under are in-applicable. So applying for registration with ST deptt. is of no use to you.

Based on my knowledge about ST, Customs and Excise laws, in my opinion trader of goods is not eligible for any refund of ST paid. However you can save yourself from Excise Duty by applying for registration as merchant exporter under CEA 1944 and procuring goods under rule 19 of CER.

I would really like to see someone who differs from me.

@ Rubul perfectly explained...

Who said service tax cannot be claimed for exports in our organisation we export and the cost of these exports for which service tax is levied is declared in Annexure and Form -1 is filed  to claim refund  yes you have to apply for service tax registration for claiming the refund  Please refer Circular 41 in this regard 

@ Sivaram

Sir please advise me under which category firm should register itself because it is trading firm and there is no service tax laibility

You can register indicating some services other than those covered in negative list  and file Nil returns for the purpose of receiving the service tax refund claim  on exports 

Sowi for my earlier comment, I was not aware of N.N 41/2007 :(. Anyways I said it was my opinion and also that I really like to see some one who differs from me. Thanks to sivaram. This particular notification is really helpful for traders (and professionals also, I believe this Notification is less known to mass)

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