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

Eligibility of Service Tax Credit for Transportation and Export Services Clarified for 100% Export Oriented Units. A discussion was initiated regarding the eligibility of service tax credit for services availed in exporting goods. An entity operating as a 100% Export Oriented Unit (EOU) inquired about the eligibility of service tax credit on transportation charges from Bangalore to Chennai Port and other services related to exporting finished products. The response clarified that services used up to the place of removal, defined as the port in export cases, are eligible for CENVAT credit. Services beyond the place of removal may qualify for a refund or exemption under specific notifications.