SERVICE TAX ON CLEARING & FORWARDING CHARGES

[Guest]

Our company exporting auto tools.We paying clearing & forwarding with service tax to our Shipping forwarder.Now the query is that the service tax paid as above can be claimed as input or not?Our consultant says it can not be claimed against export sales.My question is if cenvat is not available then rebate or refund must be claimed against exports logically as export benefit.Please guide in detail to oblige my fellows.

[Ganeshan Kalyani]

Refer

Rebate of service tax paid (hereinafter referred to as rebate) on the taxable services which are received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods

NOTIFICATION NO 41/2012-ST, Dated: June 29, 2012

AI Summary

Rebate of service tax on export-related services available; exporters may claim refund for clearing and forwarding charges. Rebate of service tax paid on taxable services received by an exporter and used for export of goods is available under the notified scheme, providing exporters a route to recover service tax paid on services such as clearing and forwarding charges rather than treating it as ordinary input/CENVAT credit against export sales.