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

Service providers advised to seek service tax exemption for exports; paying and claiming refunds is complex. A service provider exporting services inquired about billing with or without service tax and claiming refunds. Respondents advised that the provider can either seek exemption from service tax or pay it and later claim a refund. One respondent highlighted that exporting services without paying service tax is simpler but requires submitting proof of export and a Bank Realization Certificate. The consensus was that obtaining an exemption is preferable to paying the tax first and then seeking a refund, due to the procedural complexities involved in the latter.