Superseded vide notification no. 17/2009 ST dated 7-7-2009
Exempts certain taxable services specified in the Schedule received by an exporter and used for export of goods
NOTIFICATION No 41/2007-Service Tax
Dated : October 6, 2007
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.40/2007-Service Tax, dated the 17th September, 2007 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 601(E) dated the 17th September, 2007, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in column (3) of the Schedule (hereinafter referred to as specified services) received by an exporter and used for export of goods (hereinafter referred to as said goods), from the whole of the service tax leviable thereon under section 66 and section 66A of the said Finance Act, subject to the conditions specified in the corresponding entry in column (4) of the Schedule:
Provided that-
(a) the exemption shall be claimed by the exporter of the goods for the specified services received and used by the exporter for export of the said goods;
(b) the exemption claimed by the exporter shall be provided by way of refund of service tax paid on the specified services used for export of the said goods;
(c) the exporter claiming the exemption has actually paid the service tax on the specified services;
(d) no CENVAT credit of service tax paid on the specified services used for export of said goods has been taken under the CENVAT Credit Rules, 2004;
7[(e) Omitted]
(f) exemption or refund of service tax paid on the specified services used for export of said goods shall not be claimed except under this notification.
2. The exemption contained in this notification shall be given effect to in the following manner, namely:-
(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the exporter and used for export of the said goods, and such person shall not be eligible to claim exemption for the specified services:
Provided that where the exporter of the said goods and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;
(b) the exporter shall claim the exemption by filing a claim for refund of service tax paid on specified services:
Provided that-
(i) the manufacturer-exporter of the said goods shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture or warehouse, and
(ii) the exporter, other than a manufacturer-exporter, shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;
(c) the exporter who is not registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Finance Act or the rules made thereunder, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;
(d) the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the exporter within seven days from the date of receipt of the said Form;
(e) the claim for refund shall be filed on a quarterly basis, within 5[six months] from the end of the relevant quarter during which the said goods have been exported:
Provided that the said goods shall be deemed to have been exported on the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962);
(f) the refund claim shall be accompanied by documents evidencing,-
(i) export of the said goods;
(ii) payment of service tax on the specified services for which claim for refund of service tax paid is filed;
(iii) wherever applicable, a copy of the written agreement entered into by the exporter with the buyer of the said goods, as the case may be;
(g) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used for export of said goods, refund the service tax paid on the specified services used for export of said goods;
(h) where any refund of service tax paid on specified services used for export of said goods has been paid to an exporter but the sale proceeds in respect of the said goods have not been realised by or on behalf of the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.
Schedule
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Sr._No.
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Taxable Services
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Conditions
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Classification under Finance Act, 1994
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Description
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(1)
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(2)
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(3)
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(4)
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1.
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Section 65(105)(d)
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Services provided to an exporter by an insurer, including a re-insurer carrying on general insurance business in relation to insurance of said goods
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(i) document issued by the insurer, including re-insurer, for payment of insurance premium shall be specific to export goods and shall be in the name of the exporter.
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2.
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Section 65(105)(zn)
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Services provided for export of said goods
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-
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3.
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Section 65(105)(zzh)
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Services provided by a technical testing and analysis agency in relation to technical testing and analysis of said goods where such technical testing and analysis is required to be undertaken as per the written agreement between the exporter and the buyer of the said goods
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(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring testing and analysis of the said goods ; and
(ii) the invoice issued by the service provider shall be specific to export goods and shall be in the name of the exporter.
6[(ia) where the buyer of the said goods does not require testing and analysis of the said goods, but testing is statutorily stipulated by domestic rules and regulations, the exporter shall furnish copy of such rules or regulations stipulating testing and analysis of the said goods; and.]
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4.
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Section 65(105)(zzi)
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Services provided by an inspection and certification agency in relation to inspection and certification of export goods where such technical inspection and certification is required to be undertaken as per written agreement between the exporter and the buyer of the export goods
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(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring inspection and certification of the said goods ; and
(ii) the invoice issued by the service provider shall be specific to export goods and shall be in the name of the exporter.
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5.
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Section 65(105)(zzl)
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Services provided for export of said goods
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-
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6.
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Section 65(105)(zzp)
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Services provided for transport of said goods from the inland container depot to the port of export
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-
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7.
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Section 65(105)(zzzp)
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Services provided for transport of said goods from the inland container depot to the port of export
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-
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8.
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1Section 65(105)(zzzd)
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Specialized cleaning services namely disinfecting, exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter.
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(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring such specialized cleaning of containers used for export of said goods; and
(ii) the service provider is accredited by the competent statutory authority to provide such specialized cleaning services.
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9.
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1Section 65(105)(zza)
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Services provided for storage and warehousing of said goods.
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(i) the said goods are stored in a storage or warehouse which is approved by the competent authority; and
(ii) the storage or warehouse is exclusively used for the purpose of storage or warehousing of export goods.
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10.
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2Section 65(105)(f)
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Services provided by a courier agency to an exporter in relation to transportation of time-sensitive documents, goods or articles relating to export, to a destination outside India.
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(i) the receipt issued by the courier agency specifies the importer-exporter (IEC) code number of the exporter, export invoice number, nature of courier, destination of the courier including name and address of the recipient of the courier, and
(ii) the exporter produces evidence to link the use of courier service to export goods.
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11.
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2section 65(105)(zzp)
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Services provided to an exporter in relation to transport of export goods directly from the place of removal, to inland container depot or port or airport, as the case may be, from where the goods are exported.
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(i) export goods are transported directly from the place of removal to inland container depot or port or airport, as the case may be, from where the goods are exported,
(ii) invoice issued by the exporter in relation to export goods shall indicate the name of the inland container depot or port or airport from where the goods are exported,
(iii) details of exporter's invoice relating to export goods are specifically mentioned in the lorry receipt and the corresponding shipping bill,
(iv) exporter shall declare in the refund claim indicating whether such service has been received from the said service provider for purposes other than for export.
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12.
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2section 65(105)(zzzp)
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Services provided to an exporter in relation to transport of export goods directly from the place of removal to inland container depot or port or airport, as the case may be, from where the goods are exported.
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(i) export goods are transported directly from place of removal to inland container depot or port or airport from where the goods are exported,
(ii) invoice issued by the exporter in relation to export goods shall indicate the inland container depot or port or airport from where the goods are exported,
(iii) details of exporter's invoice relating to export goods are specifically mentioned in the lorry receipt and the corresponding shipping bill,
(iv) exporter shall declare in the refund claim indicating whether such service has been received from the said service provider for purposes other than for export.
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13.
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3section 65(105)(h)
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services provided by a custom house agent in relation export goods exported by the exporter.
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exporter shall produce,-
(i) invoice issued by custom house agent for providing services specified in column (3) specifying:
(a) number and date of shipping bill,
(b) description of export goods,
(c) number and date of the invoice issued by the exporter relating to export goods,
(d) details of all the charges, whether or not reimbursable, collected by the custom house agent from the exporter in relation to export goods,
(ii) details of other taxable services provided by the said custom house agent and received by the exporter, whether or not relatable to export goods.
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14.
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3section 65(105)(zm)
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(i) services provided in relation to collection of export bills,
(ii) services provided in relation to export letters of credit such as advising commission, advising amendment, confirmation charges.
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exporter shall produce evidence to link the use of services specified in column (3) for goods exported.
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15.
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3Section 65(105)(zzb)
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Services provided by a commission agent, located outside India, and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.
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(i) exporter shall provide agreement or contract or any other document, requiring the commission agent located outside India to provide services to the exporter in relation to sale of export goods, outside India,
(ii) exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill,
(iii) commission sought to be remitted is not on export of a canalized item, project exports, or exports financed under lines of credit extended by Government of India or EXIM Bank, or exports made by Indian partners towards equity participation in an overseas joint venture or wholly owned subsidiary,
(iv) documents evidencing actual export of goods,
(v) documents evidencing actual payment of commission to the commission agent,
(vi) refund of service tax shall be restricted to actual amount of service tax paid or service tax calculated on 8[ten per cent]. of FOB value of export goods, whichever is less.
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4[16.
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section 65(105)(zm)
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services of purchase or sale of foreign currency, including money changing provided to an exporter in relation to export goods.
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exporter shall produce evidence to prove that the services specified in column (3) are in relation to goods exported.
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17.
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section 65(105)(zzk)
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services of purchase or sale of foreign currency, including money changing provided to an exporter in relation to export goods.
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exporter shall produce evidence to prove that the services specified in column (3) are in relation to goods exported.
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18.
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section 65(105)(zzzzj)
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services of supply of tangible goods for use, without transferring right of possession and effective control of tangible goods, provided to an exporter in relation to goods exported by the exporter.
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exporter shall produce evidence to prove that the services specified in column (3) are used in relation to export of goods.]
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9[19.
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section 65(105)(j)
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services provided by a clearing and forwarding agent in relation to export goods exported by the exporter .
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exporter shall produce,-
(i) invoice issued by clearing and forwarding agent for providing services specified in column (3) specifying:
(a) number and date of shipping bill,
(b) description of export goods,
(c) number and date of the invoice issued by the exporter relating to export goods,
(d) details of all the charges, whether or not reimbursable, collected by the clearing and forwarding agent from the exporter in relation to export goods,
(ii) details of other taxable services provided by the said clearing and forwarding agent and received by the exporter, whether or not relatable to export goods.]
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[Click here to see the Form annexed to this notification]
[F.No.341/15/2007-TRU]
(G.G. Pai)
Under Secretary to the Government of India
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Notes :
1. Sr. No. 8 and 9 inserted vide Notification No. 42/2007 dated 29/11/2007
2. Sr. No. 10, 11 and 12 inserted vide Notification No. 3/2008 dated 19/2/2008
3. Sr. No. 13, 14 and 15 inserted vide notification no. 17/2008 dated 1-4-2008
4. Sr. 16, 17 and 18 inserted vide notification no. 24/2008 dated 10-5-2008 w.e.f. 16-5-2008
5. For the words "sixty days", the words "six months" has been substituted vide Notification No. 32/2008 dated 18/11/2008
6. Has been inserted vide Notification No. 32/2008 dated 18/11/2008
7. Has been Omitted vide Notification No. 33/2008 dated 7/12/2008 before it was read as,
"(e) the said goods have been exported without availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995;"
8. For the words "two per cent.", the words "ten per cent." has been substituted vide Notification No. 33/2008 dated 7/12/2008
9. Has been Inserted vide Notification No. 33/2008 dated 7/12/2008
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