Service tax credit on services availed for export of goods

[Govinda Raju]

sir, WE ARE AN 100% EOU UNIT 1) WHETHER IHC(TRANSPORTATION) CHARGES PAID FROM BANGALORE ICD TO CHENNAI SEA PORT IS ELIGIBLE(FOR THE PURPOSE OF EXPORT FROM CHENNAI PORT) 2) SERVICES AVAILED TO GET OUR FINISHED PRODUCTS EXPORTED ELIGIBLE FOR SERVICE TAX CREDIT KINDLY CLARIFY THE POINTS ASAP,

[Rama Krishana]

There are two situations in which service tax paid on input services used for export goods are being dealt with. First category of services are those services which are received and utilized are related to activities prior to export and second categories of services are related to after export. Here export means place of removal i.e input services utilized upto the place of removal, you can take the credit as per the provisions of cenvat credit and input services availed for activities beyond the place of removal, you can take the refund or avail exemption under notification no. 17/2009 and 18/2009. Here it is pertinent to note that in various cases, tribunal has held that in case of export, the Port is the place of removal and all the services upto the port are eligible for cenvat credit.

AI Summary

Service tax credit: input services up to place of removal eligible for credit; services beyond eligible for refund or exemption. Input services used for activities up to the place of removal qualify for cenvat credit; services used beyond the place of removal are not eligible for cenvat credit but may be claimed by refund or by seeking exemption under relevant notifications. Tribunal practice has treated the port as the place of removal, thereby allowing services up to the port to be treated as input services for cenvat credit.