Procedure and Provisions for claiming refund

[Guest]

We are exporters of Rice.We want to claim refund on service tax which has been charges to us.What is the procedure and under which provisions we can claim refund since we do not manufacture any excisable unit.

[Surender Gupta]

In your case, It is not clear in the law that how to claim refund of Service tax charged on input services by an exporter whoes product is not liable to excise duty at all. However, you may contact your excise department for more details. Alternatively, I advise you to calim the Credit of the Service Tax and file a refund claim in accordace with the proceudre under notification no. 5/2006 NT dated 14-3-2006.

AI Summary

Service tax refund guidance: exporters of non-excisable goods may claim credit then apply for refund under applicable notification. Refund entitlement for service tax on input services used in exporting non-excisable goods is legally uncertain. The practical advice is to consult the excise department and, where available, claim Credit of the Service Tax or file a refund application under the procedure set out in the applicable notification governing service-tax refunds.