Dear Experts
We are as an Exporter regularly file service tax rebate claim under notification 41/2012-ST in resect of service tax paid on input service of Business support service and clearing and forwarding service. We have been regularly receiving the rebate claim since last 3 years but now the department new officer is of the view that the amount of service tax paid to our service provider has been recovered by us from importer (our buyer) as it is subsequently included in the invoice value and hence Show cause notice issued by the dept.and asked to why the claim amount should not be rejected.
Kindly post your valuable reply on above matter urgently....
Thanks & regards,
Pradip Patwardhan
Maharashtra
Exporter Disputes Service Tax Rebate Claim Under Notification 41/2012-ST; Experts Argue Transaction Value Exclusion. An exporter is facing a challenge with a service tax rebate claim under notification 41/2012-ST. Despite regularly receiving rebates for three years, a new tax officer suggests that the service tax paid is being recovered from the importer, as it is included in the invoice value. Consequently, a show cause notice was issued. One expert argues that service tax on input services should not be part of the transaction value for exported services, making the notice unjustifiable. Another expert discusses the conditions under which rebates are allowed, emphasizing the distinction between services used beyond and up to the place of removal. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
