Service Tax refund paid under rev. chg. mechanism - If main service is exempted from ST

[YASHAVANTH RM]

Dear Sir,

Service Tax is exempted U/ Notification No. 27/2012  Dt. 20th June 2012, for service provided for the Diplomatic mission in India. The Foreign Embassy offices are exempted from service tax, provided the certificate issued by the their higher authorities. We have obtained the certificate for construction work at their Embassy premises. We are paying ST under reverse charge mechanism on Legal & other services, Since our main services are exempted under above notification, can we apply for refund of service tax paid under reverse charge mechanism.

AI Summary

Clarification sought on refund eligibility for service tax paid under reverse charge for exempt services to diplomatic missions. A query was raised regarding the refund of service tax paid under the reverse charge mechanism, specifically for services provided to a diplomatic mission in India, which are exempt under Notification No. 27/2012. The inquirer sought clarification on whether they could apply for a refund of service tax paid for legal and other services when their main services are exempt. The response indicated that works contract and construction services by subcontractors are exempt under a specific exemption, but other services remain a cost, with even the Government of India paying service tax on certain services.