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

Exporter Queries on Taxability of Rebate and DEPB Refunds Clarified: Both Considered Taxable Income An exporter of engineering items inquired about the applicability of income tax on rebate claim refunds and DEPB refunds. A respondent clarified that both are considered income and should be included as taxable income. Another respondent explained that taxable services can be exported without service tax payment, and the Central Government may grant a rebate on service tax paid, subject to specified conditions and procedures.