EXP-2 Return

[SNEHAL SHAH]

Dear sir,

As per New Budget 2015-16 , Is it compulsory for file EXP - 2 ( Vide Notification No. 31/2012 - Service Tax ) for Exemption availed on Service tax on transportation Services ( GTA ) ?

If there is no any requirement please guide to us and provide Notification or whatsoever .

Thanks and Regards,

SNEHAL SHAH

[Rajagopalan Ranganathan]

Sir,

In respect of Goods Transport Agency service service tax on such service is liable to be paid 100% either by the consignee or consignor. In the case of export the exporter has to be the service tax. If he does not want to pay service tax on such service he has to follow the procedure prescribed by Notification No. 31/2012-ST dated 20.6.2012 (with effect from 1.7.2012).

OR

You can pay the service tax on such service and then claim the refund of the same under rule5 of CENVAT Credit Rules, 2004 as amended with effect from 14.3.2006.

[YAGAY and SUN]

We have read somewhere in the Budget 2015 that there is no requirement to furnish EXP- 2 w.e.f. 01-04-2015. Will explore and share with you.

[HARIDAS Sreedharan]

Any feed back on the query raised by Mr Snehal Shah?

HARIDAS

[Rajagopalan Ranganathan]

Sir,

Notification No. 31/2012-ST dated 20.6.2012 was amended by Notification No. 4/2015-ST dated 1.3.2012 by inserting the words "port. airport or land customs station" for the words "port or airport." This is the only amendment made to Notification No. 31/2012-ST. I have not come across any other amendment to Notification No.31/2012-ST. Therefore the filing of EXP-2 by an exporter of service prevails.

AI Summary

EXP-2 filing requirement: exporters must follow notification procedure or claim refund for GTA service tax.
EXP-2 filing for exemption on GTA service tax requires exporters to follow the procedure in Notification No. 31/2012-ST; alternatively an exporter may pay the tax and claim refund under Rule 5 of the CENVAT Credit Rules, 2004. Notification No. 4/2015-ST added "land customs station" but did not remove the EXP-2 requirement, so the prescribed EXP-2/notification procedure remains applicable for export-related GTA services.