Export of services - Requirement for registeration under Service tax

[Sanjeev Sharma]

A company provides a taxable services. The value of it is more than Rs. 1 crore.All the said taxable services are exported out of India and is duly covered under Export of Service Rules Is the Company required to mandatorily register itself under the Service Tax ??

[Rama Krishana]

Since there is no service tax liability in case of export of services, an exporter should not be required to obtain registration certificate compulsorily. But, the provisions of service tax are salient on this issue. If you read the provisions of Service Tax (Registration of Special Category of Persons) Rules, 2005, an exporter is required to seek registration certificate compulsorily.

[Vijay Chitte]

It is beneficial to get registration from service tax department, whether if you are interested to get the refund of service tax / Excise duty used in provision of expeort services which is available under Cenvat credit rules.

AI Summary

Registration requirement for exporters of services may be mandatory under service tax rules and affects credit refund eligibility. Although export of services may not attract service tax on the exported transaction, the Service Tax (Registration of Special Category of Persons) Rules impose a registration requirement on exporters; registration also enables claiming Cenvat credit refunds or input relief used in providing exported services.