Refund of Service Tax to exporters, Service Tax

[Bhuvnesh]

Notification 40 & 41 - Refund of Service Tax to exporters. There is provision for refund of Service tax on testinf Charges covered under section 65(105) (zzh), in notification term testing of such goods is used now my query is if I export Garments then only service tax on Garment testing will qualify or testing of Fabric used for making such garment will also qualify assuming other conditions are met. Regards

Posts / Replies

[Madhukar N Hiregange]

AS I have understood only the post removal services are envisaged here. For other inputs the drawback rate is considered to have included the same. If you are not claiming under duty drawback then maybe you wouldbe eligible to avil credit and then refund under Rule 5 of CCR 04.