Exemption from Service tax on taxable services used in export of goods — Conditions and procedures - Service Tax - Trade Facility No. 7/2008

Exemption from Service tax on taxable services used in export of goods Conditions and procedures Commissioner of Central Excise Pune-III Trade Facility No. 7/2008 (No 7/ST/2008) Dated 21-10-2008 Attention of the Trade and Industry is invited to Notification No. 43/2007-S.T., dated 29-11-07 and Notification No. 41/2007-S.T., dated 6-10-07, as amended by Notifications No. 42/2007-S.T., dated 29-11-07, Notification No. 03/2008-S.T., dated 19-2-08 Notification No. 17/2008-S.T., dated 1-4-08 under which 16 taxable services have been notified and the service tax paid on these taxable services, which are attributable to exports even if they are not used as input services, shall be refunded to exporters. 2. Notifications No. 41 /2007-S.T., dated 6-10-07 and No. 43/2007-S.T., dated 29-11-07 provide that the service tax paid on the specified taxable services by exporters shall be refunded in the prescribed manner subject to the conditions specified therein. The exemption from service tax notified is by way of reimbursement of service tax paid and is allowed provided linkage to export is established. 3. The laid down in the said Notifications, the exemption shall be claimed by the manufacturer-exporter or merchant exporter of the goods and shall be provided by way of refund of service tax paid on the notified services used for export of the said goods. The refund is eligible to the exporter of the goods, only if, it is shown that Cenvat credit of service tax is paid on the notified services used for export of said goods. Further it shall also be shown that Cenvat credit of service tax paid has not been taken under the Cenvat Credit Rules, 2004 and goods have been exported without availing drawback of service tax paid on the notified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. 3. The procedure for exemption under the said notification shall be as follows:- (a) The person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the Finance Act, 1994 shall pay service tax as applicable on the notified services used for export of the said goods. (b) Where the exporter is manufacturer the claim for refund shall be filed with the Deputy/Assistant Commissioner of Central Excise, having jurisdiction over the factory of manufacture or the warehouse; (c) Where the exporter is other than a manufacturer-exporter, the claim for refund shall be filed with the Deputy/Assistant Commissioner of Central Excise, having jurisdiction over the registered office or the head office, as the case may be, of such exporter; (d) 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 to the Notification with the jurisdictional Deputy/Assistant Commissioner of Service tax; (e) The jurisdictional Deputy/Assistant Commissioner of Service Tax 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; The claim for refund shall be filed on a quarterly basis, within sixty days from the end of the relevant quarter during which the goods have been exported : 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); (g) The application for 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. For this, the Original Invoice/bill issued by the service provider in accordance with the Sec. 4A of the Finance Act, 1994 to Service receiver shall be filed. The claimant shall give details of payment made produce a copy of the ledger account evidencing payment of service tax against the invoices/bills submitted duly certified by their Chartered Accountant, preferably from their auditors who prepare their balance sheets. The application for refund shall contain details relevant to the refund claim as mentioned at Sr. No. 5, 7, 8 10 in the declaration form given below. The applications should co-relate the invoices with Services availed with the details shown as per Sr. No. 8 of the declaration form. In case the S. Tax Registration Number is not mentioned in the Invoice/bill issued by the service provider in accordance with the Sec. 4A of the Finance Act, 1994 the same should obtained before filing the refund claim. Claimants are advised upon to bifurcate their total refund claim into individual service tax components, taxable Service wise, for early processing of the claim correct disbursement of refund. (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 as envisaged in the said notifications; (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 realized 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. Declaration Form (For obtaining a STC to be used for claiming refund of Service tax.) 1. Name of the exporter: 2. Address of the registered office or head office of the exporter: 3. Permanent Account Number (PAN) of the exporter: 4. Import Export Code (IEC) of the exporter: 5. Details of Bank Account of the exporter: (a) Name of the Bank: (b) Name of the Branch: (c) Account Number: 6. (a) Constitution of exporter [Proprietorship/Partnership/Registered Private Limited Company/Registered Public Limited Company/others (specify)]. (b) Name, address and telephone number of Proprietor/Partner/ Managing Director. 7. Description of exports goods: S. No. Description of export goods Classification in case of excisable goods (1) (2) (3) 8. Description of taxable services received by the exporter for use in export goods: S. No. Description of taxable service used for export of goods mentioned in Col. (7) Classification under the Finance Act, 1994 (1) (2) (3) 9. Name, designation and address of the authorized signatory/signatories: 10. I/We hereby declare that - (i) The information given in this application form is true, correct and complete in every respect and that I am authorized to sign on behalf of the exporter; (ii) No Cenvat credit of service tax paid on the specified services used for export of said goods is availed/taken under the Cenvat Credit Rules, 2004; (iii) The said goods are exported without availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995; and (iv) I/We shall maintain records pertaining to export goods and the taxable services used for export of the said goods and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorized in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise/Service tax as the case may be. (Signature of the applicant/authorized person with stamp) Date : ................ Place: ................ List of Services covered under schedule of Notification No. 43/2007-S.T., dated 29-11-07 and Notification No. 41/2007-S.T., dtd. 6-10-07, as amended by Notifications No. 42/2007-S.T., dated 29-11-07, Notification No. 03/2008-S.T., dtd. 19-2-08 Notification No. 17/2008-S.T., dated 1-4-08. Sr.No. Classification under Finance Act, 1994 Description Conditions 1 2 3 4 1. Section 65(105)(d) Services provided to an exporter by an insurer, including a re-insurer carrying on general insurance business in relation to insurance of said goods (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. 2. Section 65(105)(zn) Services provided for export of said goods - 3. Section 65(105)(zzh) 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 (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. 4. Section 65(105)(zzi) 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 (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. 5. Section 65(105)(zzl) Services provided for export of said goods - 6. Section 65(105)(zzp) Services provided for transport of said goods from the inland container depot to the port of export (By Road) - 7. Section 65(105)(zzzp) Services provided for transport of said goods from the inland container depot to the port of export (By rail by any other person other than Govt. railways.) - 8. Section 65(105)(zzzd) Specialized cleaning services namely disinfecting, exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter. (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. 9. Section 65(105)(zza) Services provided for storage and warehousing of said goods (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." 10. Section 65(105)(f) 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. (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. 11. Section 65(105)(zzp) 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. (By road) (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. 12. Section 65(105)(zzzp) 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. (By rail by any other person other than Govt. railways.) (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. 13. Section 65(105)(h) Services provided by a custom house agent in relation export goods exported by the exporter. Exporter shall produce,- (1) 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. 14. Section 5(105)(zm) (i) services provided in relation to collection of export bills, Exporter shall produce evidence to link the use of services specified in column (3) for goods exported. (ii) services provided in relation to export letters of credit such as advising commission, advising amendment, confirmation charges.