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

Exploring Service Tax Exemption for Exported Services Under Notification No. 17/2009-ST and Export of Services Rules 2005 A forum discussion addresses whether the export of services is exempt from service tax and the procedures involved. Respondents reference various notifications and rules, including Notification No. 17/2009-ST, Notification No. 18/2009, and Export of Services Rules 2005, which exempt exported services from tax if certain conditions are met. They mention the possibility of claiming rebates or refunds under specific notifications if service tax has been paid on exported services. It is highlighted that services must be paid for in convertible foreign exchange to qualify as exports. The discussion emphasizes compliance with specific rules for tax exemption.