TMI BlogRefund of service tax paid by exporting company to agencies which procures the export ordersX X X X Extracts X X X X X X X X Extracts X X X X ..... Please clarify, whether the serice tax charged by different agencies including service tax on commission for procuring export order and exports conducted on basis of export order received through the efforts of the agency/ company who charged commission based as % on the export order, is the service tax so paid is refundable by the customs authorities to the exporting company ? Or how to claim thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s service tax back ? Or the exporting company can buy these services under service tax exemption - if so - under what provision ? The case is like this - A is an company engaged in a import and trading buisness. Company B approaches company A that it can procure an export order in favour of company A for which company A has to aource the different products from Domestic sources and also from ove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rseas and make investment and execue the export order. Company B is to be paid a commission based on % of the export order executed. Since the commission to be paid is substantial and attracts Service Tax provisions -should the Company A ( exporting company ) pay commission to company B along with service tax and claim a refund from customs OR Service Tax authorities OR exporting company can avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services of company B as service tax exempt catogory - as Government's policy to exempt exporting companies from Servce tax. - Reply By Surender Gupta - The Reply = The services provided an agency outside India to an exporter in India is termed as Import of service tax and the same is exempt vide notification no. 18/2009 - ST, subject to certain conditions. Other than this exemption any commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion paid for procuring export orders is available by way of refund under Cenvat Credit Rules, 2004 - Rule 5. For an example if the commission agent (B) is located in India, in that case the services provided by B can not be said as import of service to export of service in the hands of A who is an exporter of goods from India. Except duty drawback, DEPB and other export incentives allowed as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er FTP, the exporter has to reach the service tax department for claiming refund of service tax paid on commission. - Reply By mihir mistry - The Reply = i have many client who are mainly in exports, they recieve services from outsied india for testing of their products and then with this certificate they export this good. so just wanted to know that.. do they have to pay service tax and then c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim for refund under notification 17/2009 . plz reply as soon as possible. thank you - Refund of service tax paid by exporting company to agencies which procures the export orders - Query Started By: - Baldev Aggarwal Dated:- 26-3-2010 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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