EXEMPTION AGAINST SCRIPS IN SERVICE TAX

[Dr. Sanjiv Agarwal]

Vide Notification Nos. 6/2013-ST, 7/2013-ST and 8/2013-ST, all dated 18.4.2013, Central Government has exempted the taxable services provided or agreed to be provided against a scrip by a person located in the taxable territory subject to certain conditions.

Specific Exemptions against Scrips

The specific exemptions against notified scrips are as under:-

(a) Notification No. 6/2013-ST dated 18.4.2013

Exemption for focus market scheme duty credit scrip issued to an exporter by Regional Authority as per Para 3.14 of Foreign Trade Policy. The scrip should be issued against exports to the countries notified in Appendix 37C of the Handbook of Procedures, Volume-I. The conditions specified in this notification has been amended vide Notification Nos. 11/2013-ST, dated 13.6.2013, Notification No. 17/2013-ST, dated 26.12.2013 and Notification No. 5/2014-ST, dated 24.2.2014.

(b) Notification No. 7/2013-ST dated 18.4.2013

Exemption to the Focus Product Scheme duty credit scrip issued to an exporter by the Regional Authority in terms of Para 3.15 of Foreign Trade Policy. The scrip should be issued against export of products listed in Appendix 37D of the Hanbook of Procedures, Volume 1.

(c) Notification No. 8/2013-ST dated 18.4.2013

Exemption to the Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) duty credit scrip issued to an exporter by the Regional Authority in terms of Para 3.13.2 of the Foreign Trade Policy. The scrip should be issued in against exports of the products listed in Appendix 37A of the Handbook of Procedures, Volume 1.

(d) Notification No. 10/2015-ST dated 08.04.2015

Exemption to services provided or agreed to be provided against a scrip by person located in taxable territory - Such exemption shall be applicable to the Merchandise Exports from India Scheme (MEIS) duty credit scrip issued to an exporter by the Regional Authority as per paragraph 3.04 and 3.05 of Foreign Trade Policy (2015-2020) (FTP). For this exemption, 'scrip' means merchandise exports from India scheme duty credit scrip issued to exporter by Regional Authority as per FTP. The exemption is subject to conditions specified in the Notification [Notification No. 10/2015-ST dated 08.04.2015.

(e) Notification No. 11/2015-ST dated 08.04.2015

Exemption to services provided or agreed to be provided against a scrip by a person located in taxable territory - Such exemption shall be applicable to service exports from India duty credit scrips (SEIS) issued by the Regional Authority in terms of paragraphs 3.08 and 3.10 of Foreign Trade Policy (2015-2020) (FTP). For this exemption, 'scrip' means service exports from India scheme duty credit scrip issued to an exporter by the Regional Authority as per Para 3.08 and 3.10 of FTP. The exemption is subject to conditions specified in the Notification [Notification No. 11/2015-ST dated 8.4.2015].

In these exemptions, the holder of the scrip to whom the taxable services were provided or agreed to be provided shall be entitled to avail the draw back or Cenvat Credit of Service Tax leviable under section 66B, against the Service Tax debited in the scrip and validated by the Officer. Foreign Trade Policy means Foreign Trade Policy 2009-2014 published by Government of India in the Ministry of Commerce and Industry.