LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

ST Refund - Merchant Exporter

Pavan Jain S (Chartered Accountant) (1575 Points)

20 August 2009

Can a merchant exporter claim refund of service tax paid on input services directly attributable to export but not specified in notification 41/2007 r.w. 17/2009?

Since these input services are directly related to export goods, can i claim refund? If yes, under what provision or scheme?

Reply
Follow
Share

5 Replies

shrikant (self ) (65 Points)
Replied 21 August 2009

hi,

one can claim refund under that notification only for specified input services.

if services are used directly for export of service, then please check

whether such service fits into defintion of "input service" under Cenvat Credit Rules, 2004. If YES, then...

un-utilised credit can be claimed as refund subjected to provisions of the said rules and ST law.

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 23 August 2009

How can a merchant exporter having no output service and not manufacturing excisable goods can claim refund of cenvat credit? To my knowledge, the refund of cenvat is allowed only under Rule 5 of CCR Rules which entitles only a manufacturer-exporter. Kindly clarify.

Sushma Mevacha (Executive) (394 Points)
Replied 24 August 2009

As per the notification NO 17/2009 dated 7th July, there is a Form A-2 given in the said notification spacified for the Merchant Exporter to file the ST refund. If the marchand exporter is not registered with central Excise, he can file the claim directly to the Service Tax DIvision.

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 24 August 2009

Ms. Sushma. kindly read my query carefully. I am not asking for a refund of specified services. My query is can a merchant exporter claim refund of ST paid on input services which are not specified in not 17/2009 but are directly attributable to the export of mercandise. Not 17/2009 provides for refund of ST on those input services which are not in the nature of input service but are linked to exports.

If a merchant exporter avails any services not so specified in the aforesaid notification, can he claim refund?