Refund claim - export of services, Service Tax

[Vartik Choksi]

Following is my queries. •Do I entitle to claim the refund on all input services which has been availed for exporting the goods if there is no domestic sales under Rule 5 of Cenvat Credit Rule, 2004. •Assuming we have made domestic sales during the year. What would be the position if I have made export sales as well as domestic sales? •What would be the impact of Notification no. 41/2007–ST dated 6-10-2007?

Posts / Replies

[niranjan gupta]

In case of export, you can claim refund of service tax paid on input services under rule 5 of the Service Tax Rules. In case you are having domestic billing, you can utilised total input credit to pay service tax on domestic billing.

[Mukesh Kumar]

Though I agree with the view of Mr. Niranjan Gupta, but the rule 5 is applicable only if your either engaged in Manufacturing of excisable goods or providing taxable services. If you are engaged in trading activity or to say merchant exporter, you have no option but to file a refund claim under notification no. 41/2007.