Export of Services

[Achyut Kale]

Dear Freinds,

Whether export of services are fully exempted from tax?

What is the procedure to be followed for export of services?

Is there any specific Notification on the matter

Pl update

Regards

Achyut Kale

 

[YAGAY andSUN]

Please refer  Notification No. 17/2009-ST and Notification No. 18/2009in this regard.

 

[sv bhasker]

Dear Achut,

Please refer to Rule 4 of Export of Services Rules 2005, which exempts services exported  from payment of Service Tax.  Export of services is subject to conditions of the said Rules. You can claim rebate under Rule 5, if you pay tax on services exported. Export of Services Rules 2005 , came into existence through Notification No.9/2005-ST dt 3.3.2005.

 

 

[Mahir S]

(i)  Taxable services may be exported without payment of service tax, provided the conditions specified in Export of Service Rules, 2005 are fulfilled.

(ii) Where service tax has already been paid on export of services to countries (other than Nepal and Bhutan), rebate/refund of such service tax, can be availed under notification no 11/2005-ST dated 19.4.2005;

(iii) Where excise duty / service tax has already been paid on the inputs and input services used in export of services to countries (other than Nepal and Bhutan), rebate/refund of such excise duty on inputs and service tax paid on input services can be availed under notification no. 12/2005- ST dated 19.4.2005.

(iv) Where taxable services are exported without payment of tax, but CENVAT Credit was availed, the refund of accumulated CENVAT Credit (if cannot be fully used for payment of service tax), may be claimed as refund under rule 5 of the Cenvat Credit Rule, 2004.

[Vijay kumar]

Yes. Any taxable service can be exported without payment of service tax, in terms of Rule 4 of Export of Service Rules, 2005. Since you have not specified the service rendered by you, u r advised to go through Rule 3 of the said Rules which specifies the conditions to be fulfilled for the three categories of services mentioned therein. In general, for any taxable service to be treated as exported, the payment shall be received in convertible foreign exchange, as per sub-rule (2) of the said Rule 3.

AI Summary

Export of services exemption: exported services may be exempt from service tax if prescribed conditions and payment criteria are met. Taxable services exported may be treated as export of services and exported without payment of service tax if conditions in the Export of Service Rules, 2005-notably receipt of payment in convertible foreign exchange and other Rule 3 criteria-are met. Where tax or duties have already been paid, rebate or refund routes apply for exports (excluding certain neighbouring countries), and refunds of excise duty, service tax on inputs, or accumulated CENVAT credit are available under the relevant notifications and Cenvat Credit Rules.