Service tax credit and Refund of service tax paid on export services

[srinivasan.K kuppuswamy]

Please refer earlier query submitted and id is 106055.

Service tax  paid on supply of tangeble goods use for service(Packing material free supply for packing and export) Service tax paid under reverse charge for  transaction charges as well for renting charges will it be possible to avail service tax credit.

Othar than this can we file refund for other services such as CHA, Port services, Terminal handling. Material received in  Factory and usage in Warehouse.

In the above context request your advice whether service tax paid on tangeble goods use service under reverse charge is eligible for ST credit.

Your immediate answer will be highly helpul.

regards

K.Srinivasan

 

 

 

 

[Madhukar N Hiregange]

Whatever are the services used to provide the export services would be eligible for credit and consequent refund.If the goods provided are under the control and possession of the owner outside India and they are used by you for the service then liable under reverse charge and eligible for credit . 

AI Summary

Service tax credit eligibility: input and reverse-charge service tax on supplies used in export services qualifies for refund. Service tax paid on inputs and services used to provide export services is eligible for input credit and consequent refund. Ancillary services such as customs handling, port and terminal handling, transaction and renting charges used in supplying export services qualify. If tangible goods supplied remain under the owner's control and possession outside India and are used by the recipient for the export service, tax under the reverse charge mechanism is leviable and eligible for credit.