Service and VAT tax for exports

[Asked by Guest]

Hi,

Since in export we will not charge client any taxes, do I need to register for Service or VAT taxes?

If I need to register then can you please help me to understand for what benefits I have to get registered.

[Ganeshan Kalyani]

Sir the conditions for registration under Vat if satisfied then registration has to be taken. for that the respective state Vat act should be checked.

Secondly if you register under service tax then you will be able to claim service tax rebate on the service availed for export.Thanks.

[KASTURI SETHI]

Sh.M.Kings Ji,

I agree with the reply of Sh.Ganeshan Kalyani, Sir. But your query is incomplete despite that Sh.Ganeshan Kalyani has replied correctly. If you elaborate your query, then you can get a comprehensive reply.

[Suryanarayana Sathineni]

Dear Friend,

In my view, irrespective of export or otherwise, as a company incorporated for manufacture and sale, need to get registered under VAT/CST.

Further, if you are a provider of taxable service or person liable to pay service tax under Reverse charge under Section 68(2) of Finance Act,1994, you have to registered with Service Tax.

Hope it is clear.

Best Regards

Suryanarayana

Hi Surya sir,

Thanks for your valuable reply.

I am a Merchant exporter of Silk Fabrics. Even If am not dealing any sales in domestic market is it mandatory to register for VAT.

[Ganeshan Kalyani]

Yes it is mandatory to have Vat registration. Thanks.

Thank to all for your valuable reply

AI Summary

VAT registration requirement: exporters may need registration without domestic sales; service tax registration permits input credit for export services.
Exporters must obtain VAT registration when conditions in the applicable State VAT Act are met, so merchant exporters may be required to register even without domestic sales. Separately, persons providing taxable services or liable under the reverse charge mechanism must obtain service tax registration, which permits claiming credit or rebate on service tax paid for services used in export activities.