SERVICES PROVIDED TO EXPORTER

[LAXMIKANT ARORA]

Dear Sir,

 

A registered service provider has provided fabrication services to an exporter ( who is not an exporting unit in SEZ).

Now I want to know whether these services are exempt or any input refund by the exporter can be claimed or not in the following cases:

 

1. When only services are provided.

 

2. When services are provided as well as goods used  are also provided by the service provider in works contract

 

I also want to know WCT taxability in the abovesaid case.

 

In anticipation for your reply.

 

 

THANKS & REGARDS

AI Summary

Clarification Sought on Tax Implications for Fabrication Services to Exporters: Service Tax, WCT, and Exemptions Explained An individual inquired about the tax implications for fabrication services provided to an exporter, specifically regarding service tax and works contract tax (WCT). The query addressed whether these services are exempt or if input refunds can be claimed, both when only services are provided and when goods are included. A respondent clarified that if fabrication results in a new product, central excise may apply, with an exemption limit of 150 lakhs. If not, service tax is applicable unless covered by a specific notification. WCT is chargeable on the service component based on transaction type. Further clarification on tax rates and applicable notifications was requested.