Introduction of Service Tax Refund through ICES 1.5 – instructions and details of procedure in EDI-reg - Service Tax - 01/2012

Govt. of India Ministry of Finance Department of Revenue Phone: 044-2256 9500 Fax: 044-2256 1445 e-mail: [email protected] OFFICE OF THE COMMISSIONER OF CUSTOMS (AIRPORT AIR CARGO) NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI 600 027 F.No.S.Misc.12/2010-EDI-ACC Date: 03.01.2012 PUBLIC NOTICE 01 /2012 Sub:- Introduction of Service Tax Refund through ICES 1.5 instructions and details of procedure in EDI-reg Attention of Exporters/Custom House Agents is invited to Board's circular No. 149/18/2011-ST dated 16.12.2011 . A simplified scheme for electronic refund of service tax to exporters on lines of duty drawback is being introduced in ICES 1.5. With the introduction of this new scheme, Exporters now have a choice: they can opt for electronic refund through ICES system, which is based on the 'schedule of rates' prescribed vide Notification 52/2011 Service Tax dated 30.12.2011 or they can opt for refund on the basis of documents, by approaching the Central Excise/Service Tax formations. 2. One of pre-requisites for claiming S.T refund electronically through ICES 1.5 is that the Exporters should have a bank account and also central excise registration number or service tax code number (including service tax registration number) and the same should be registered with ICES 1.5. Registration of Bank Account 3. The S.T Refund Scheme will be similar to drawback scheme. STR amount processed under the ICES will be disbursed through the branch of the authorized bank at each customs location. The STR amount in respect of individual Exporters will be credited directly to the bank account of the Exporter, in the authorized bank branch at a Custom location or to any core banking enabled banking account of the Exporter, in any branch/bank anywhere in the country (through the NEFT/RTGS). For this purpose, the Exporters are required to register with Customs, the Indian Financial Service Code (IFSC) of the bank branch in which Exporter wishes to receive the STR amount, the core banking enabled account number, bank name and address, using Annexure-A enclosed. The procedure for registration of bank account is the same as existing procedure for registration of bank account for receiving drawback amount. The Customs officer in EDI will enter these details in ICES 1.5 and generate a checklist. Exporter/his authorized representative will check the checklist and confirm its correctness. Once the details are found correct, the same shall be saved in system. 4. Exporters who have their bank account numbers already registered for drawback purpose need not register their bank accounts again. The existing account itself shall be used for crediting S.T Refund also. It may be added that there is no option of having separate accounts for drawback and S.T Refund. Registration of Central Excise registration number or service tax code number (including service tax registration number) 5. Besides bank accounts, each Exporter claiming S.T refund need to provide Central Excise registration number or PAN based service tax code number (including PAN based service tax registration number) and register the same in ICES 1.5. Necessary details should be provided in part 'B' of said Annexure 'A' along with self-certified copy of central excise registration certificate or service tax code number certificate. The same will be entered in ICES 1.5 by EDI Section. ICES 1.5 will verify these details with the details available from ACES. A checklist shall be printed and the Exporter/his authorized representation should check its correctness and return to customs officer after signing etc. Then the details will be saved in Systems. This is one time registration and mandatory for all exporters claiming S.T Refund. ICES 1.5 will not accept shipping Bills with claim of STR if these details are not registered. 6. It may be noted that registration of bank account and Central Excise registration number/ service tax code number has to be done at each customs location separately. 7. While capturing central excise registration certificate or service tax code number in ICES 1.5, the System will validate the details with details available from Automation of Central Excise and Service Tax ( ACES ) and only on successful validation, data will be saved in ICES 1.5. It may be added that either central excise registration certificate or PAN based service tax code number (including service tax registration number) has to be provided to claim ST Refund through ICES 1.5. In case an Exporter does not has either of two numbers mentioned above, he should either get the same as per procedure prescribed in notification no.17/2009-ST dated 7.7.2009 or claim service tax refund from jurisdictional central excise/ service tax officer. 8. The Exporters are requested to carry out ST/Central Excise Registration immediately to avoid any inconvenience due to last minute rush. Details of post-registration processing of ST Refund in ICES 1.5 9. Salient features of processing of Service Tax Refund through ICES 1.5 are as follows: a. ST Refund through ICES 1.5 shall be claimed by Exporter by declaring Y in relevant field at the time of filing of Shipping Bill and declaring STR Serial number (Heading/subheading number) as per STR Schedule to be notified shortly. b. Schedule for the service tax refund has entries at 2 digit/4-digit levels and the software validates the claim of the Exporter by comparing Service Tax Refund (STR) Sl. No. declared by the exporter with RITC declared by him upto 2/4 digit level only as the case may be. c. There is no change in existing flow of documents till LEO due to introduction of service tax refund. At present following Shipping Bill move to AC's screen: (i) Duty free SB with. FOB more than ₹ 10 Lakh, (ii) Drawback SB where DBK claimed is more than ₹ 1 Lakh, (iii) NFEI SB(free trade sample) where FOB is more than ₹ 2000/-. (iv) Besides all license SB (whether under DEEC, EPCG etc.) also move to AC queue after Appraising Officer. Flow of documents will remain same even after introduction of this scheme. d. Shipping bills with only STR amount will move directly in scroll in queue after EGM is filed. However drawback-shipping bills having STR also will continue to move to DBK-superintendent screen and DBK-AC screen (in case DBK is more than ₹ 1 lakh). e. The temporary scroll generated by Drawback AC/DC will have all the shipping bills i.e Drawback SBs as well has non-Drawback shipping bills in which Service Tax refund is being granted. Temporary scroll shall indicate drawback amount and STR amount separately to enable custom officers do scrutiny of drawback shipping bills. f. Amount credited in bank account of the exporters shall be STR (in case of only STR claim) and total of drawback and STR (in case of drawback and STR claim). g. Exporters can check status of STR through ICEGATE as well as Touch screen application. 10. Besides STR Module, provision for capturing intent to avail benefits of chapter 3 of FTP has also been introduced by indication Y or N at item level. 11. Further, additional fields to indicate Port of Destination and Country of Destination as per Bill of Lading have also been introduced in SB. 12. The changes in respect of processing of Shipping Bills will come into effect from 3.1.2012. It is requested that all stakeholders may be requested to note down the above changes. Trade enquiries may be addressed to [email protected] . 13. If any, difficulties/problems faced the same may be brought to the notice of the Additional Commissioner (Systems). (SANJAY KUMAR AGARWAL) COMMISSIONER OF CUSTOMS AIR CARGO AIRPORT Annexure A PART- A BANK ACCOUNT REGISTRATION FOR E-STR I.E.C. Number : .. IFS Code : .. Bank Account Number : .. Bank Name Address : ----------------------------------------- Certificate from the bank Certified that the above particulars are correct . Signature (Bank Branch Manager along with official seal) PART-B Central Excise Registration/Service Tax Code Number In case, Service Tax Refund (STR) is to be claimed electronically through ICES 1.5, on the basis of schedule of rates , please provide following details: Central Excise Registration Number:.................................................................. OR Service Tax Code Number:................................................................. Declaration I declare that the above particulars mentioned in Part A and B are correct. Signature Exporter/ Authorized Representative Name Designation with seal