Requirements for getting refund

[hamsa lekha]

Hi.. Our company is a 100% EOU and an unit registered under STPI. We are providing Software development services out side India, other way, we are exporting the service which is taxable in India. According to Notification No. 5/2006 CE (NT) , Dated 14.03.06,we applied for the refund of input service tax which is used for providing the output service that are exported outside India. We, submitted everything and we explained them how those input services correlated to the output services. Still they are rejecting the refund claim. Can u please suggest me what are the exact requirements to be fulfilled to get refund under the said notification Viz.. Notification No. 5/2006 CE (NT)/

[Guest]

Once the input services are eligible services for the purpose of Cenvat Credit, you are eligible for refund of the same on export of output service by virtue of rule 5 of CCR read with notification no. 5/2006. Yes, it is seen that department is over cautious and Board must isssue a suitable circular addressing this issue. At present, you have no option except to go into an appeal in case department deny the refund of eligible input credit.

[Guest]

madam, getting refund from ST department is cumbersome. You have to ensure: The service providers have got registration, they have remitted their taxes to govt. they are having registration for the services provided to you. You have to file the claim within time limit, have registration from the date from which you are claiming refund of input st, not engaged in DTA taxable services etc.,

[RadheyShyam Mangal]

There is no requirement of one to one corelation for refund under rule 5 of CCR, 2004. there are many tribunal decisions in the matter.

AI Summary

Refund of input service tax on exported services requires eligible Cenvat credit, supplier registration, timely claim and tax payment. Refund of input service tax on exported services requires that input services qualify for Cenvat credit and were used for exported output services; claimants must ensure service providers are registered and have paid tax, maintain claimant registration covering the claimed period, file within prescribed time limits, and not engage in conflicting domestic taxable activity. One-to-one correlation between each input and exported output is not a statutory necessity, though departments commonly scrutinise such linkage.