Raising Bill for Export of Services and how to claim refund of Service Tax

[Ashok Chopra]

Respected Forum,

I am service provider, I am exporting services. I am going to raise bill first time, my querry:-

1. Should i raise bill with service tax or without service tax?

2. If i raise bill with service tax, should i debit the amount from the service tax lying credit with me for input services?

3. How can i claim the service tax on export of services? Please let me know the procedure.

Thanks and regard

[Rajagopalan Ranganathan]

Sir,

You can claim the service tax paid om the output service exported and service tax paid by you on the input services utilized by you for providing the output service. Please refer to Notification NO. 39/3012-ST dated 20.6.2012 (with effect from 1.7.2012) as amended for detailed procedure prescribed.

[DR.MARIAPPAN GOVINDARAJAN]

In my view there are two options - one is to get exemption from the levy of service tax and the other is to pay service tax and get refund of the same from the Department. For that you have to give your option to the Department. Ranganathan Sir, Am I correct?

[Ganeshan Kalyani]

The option of getting exemption seems fruitful rather than paying first and seeking refund .

[Rajagopalan Ranganathan]

Dear Shri. Govindarajan,

It is easier to export output services without payment of service tax than on payment of service tax and then claim refund/rebate of the service tax paid. However even if you export without payment of service tax you have to submit proof of export along with Bank Realization Certificate. Till all this formalities are completed the sword will continue to hang over your head.

[DR.MARIAPPAN GOVINDARAJAN]

Among two methods getting exemption from payment of service tax would be better, I think.

AI Summary

Export of services: choose exemption or pay and claim refund; preserve proof and bank realization certificate. Choose between invoicing exports of services without tax under the exemption option or invoicing with service tax and claiming a refund for tax on the exported output and on input services. Claiming refund follows the prescribed procedural route in the applicable notification. Maintain proof of export and a Bank Realization Certificate to substantiate refund or exemption claims; exemption is generally operationally simpler than paying tax first and seeking reimbursement.