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

Export-Oriented Unit Struggles with Input Service Tax Refunds Due to Cumbersome Process; Appeals May Be Necessary A company operating as a 100% Export Oriented Unit (EOU) and registered under the Software Technology Parks of India (STPI) is facing difficulties in obtaining a refund for input service tax used in exporting software development services. Despite complying with Notification No. 5/2006 CE (NT), their refund claims are rejected. Respondents advise that eligible input services qualify for refunds under rule 5 of the Cenvat Credit Rules (CCR), but the process is cumbersome. They suggest ensuring proper registration and timely filing, and note that an appeal may be necessary if refunds are denied, as one-to-one correlation is not required.