Credit of service tax paid during the premises was under construction

[puneet virmani]

'A' is a B.P.O operational after 2 months from now-services to be rendered are covered under business aux. service but to be wholly exported as covered by export rules.Question is as now office from where services are to be rendered is under contruction and service tax is paid under various heads till office gets ready.Whether 'A' company can take refund of service tax paid in office construction even though services r to be rendered after 2 months(exported).

AI Summary

BPO Company 'A' Cannot Claim Service Tax Refund Before Export Operations Begin; Accumulate and Claim Later. A business process outsourcing company, referred to as 'A', plans to begin operations in two months, providing services that fall under business auxiliary services and are intended for export. The company is currently incurring service tax costs related to the construction of its office premises. The query is whether 'A' can claim a refund for this service tax before commencing service export. The response clarifies that a refund cannot be claimed before the actual export of services. Instead, the company can accumulate the service tax paid on input services and claim a refund once the export begins.