Dear Forum People,
One of the Readymade Garments manufacturer is not availing Cenvat Credit as per recent Budget. However the manufacturer is paying Service Tax to the Landlord on Rent of Factory premises. manufacturer also does not registered under Service Tax but registered with Central Excise. the RMG manufacturer want to refund the service tax amount which they are paying on rent amount to their landlord. please guide us.
Is it possible to them to refund the paid Service Tax amount ?
If yes, where the refund claim shall be filed, wether at Excise office or Service Tax off.
Garment manufacturer seeks Service Tax refund on factory rent; landlord must remit tax under 'Renting of immovable property'. A readymade garments manufacturer, not availing Cenvat Credit and registered with Central Excise but not Service Tax, seeks a refund of Service Tax paid on factory rent. The query asks if a refund is possible and where to file it. The response clarifies that the Service Tax paid to the landlord must be remitted to the government by the landlord under the service 'Renting of immovable property'. It is an indirect tax collected by the service provider, unrelated to the manufacturer's registration status or Cenvat Credit non-availment. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
