Applicability of Income tax

[Dipanwita Nag]

12 September 2009 Dear Sir, We are an exporter of engineering items. Please let us know whether income tax is applicable.. 1) On rebate claim refund 2) DEPB refund Thanks and best regards Shamima Khan Mob: 9830606299 Excelo Industries Inc Phone 03326456660 e.mail: [email protected]

[Mukesh Kumar]

Yes, rebate claim (refund of excise duty) and / or DEPB refund is nothing but an income in the hands of the importer. He include the same as part of taxable income.

[Guest]

Export without payment of service tax.- Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax. Rebate of service tax.- Where any taxable service is exported, the Central Government may, by notification, grant rebate of service tax paid on such taxable service or service tax or duty paid on input services or inputs, as the case may be, used in providing such taxable service and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification.1

AI Summary

Taxability of export refunds: rebate and DEPB refunds treated as income and includible in taxable income. Rebate claims, including excise duty refunds and DEPB refunds, are treated as income and must be included in the recipient's taxable income. Additionally, taxable services exported may be exported without payment of service tax and the Central Government may notify rebates of service tax or duty on inputs or input services used in exported services, subject to prescribed conditions and procedures.