Service tax refund to Exporters under notification 40 & 41

[Guest]

Service tax refund to Exporters under notification 40 & 41 port charges are eligible for service tax refund.We are having bills of C&F agents wherein he is shwoing components such as :- Inland Haulage Charges, Data processing Fee,Measurment Charges etc. However C& F agent is not giving us any supporting for above charges. Can we claim refund on the basis of C&F agents bill or do we need supporting documents from port authority. Best Regards

[Surender Gupta]

In case you do not have any bills / invoice for the input services, it is not possible to establish that those services have suffered service tax and the same has been paid by the provider of such services. Therefore, you may ask C&F agent to take cenvat credit on all the services used by him and charge service tax on the full amount billed by the agent on you.

[Guest]

Thanks for quick reply sir, I would like to add that C& F agent is giving us bills wherein he is charging Service tax. his bills runs like :- Inland Haulage Charges Rs. 4,603 Data Processing Fee Rs. 50 Starpping Exp. Rs. 350 Documentation Rs. 500 Carting Charges Rs. 100 Measurment Rs.105 Transportation Rs. 1600 Bill of Lading Rs. 900 Labour Rs. 100 Agency Charges Rs. 1000 -------------- Total Rs. 9,308/- *Service Tax @ 12% 973/- Education Cess 19/- Higher Edu. Cess 10/- ----------- Total Bill 10,310/- * Service Tax on transportion after 75% abatement. Now my Query is :- Do I need to get Supporting bills from C& F agent for say Inland Haulage Charges ( From ICD Dadri till Bombay port) which he has incurred, as per C& F agent they are having running account for that so they can not give us supporting bills. Thanks & Best Regards

AI Summary

Service tax refund requires documentary proof of tax on input services; agent must take cenvat credit and charge tax. Refund entitlement depends on documentary proof that input services bore service tax; a consolidated C&F agent bill without underlying invoices does not establish tax payment. Absent supplier invoices, exporters cannot substantiate refunds; the practical remedy proposed is for the C&F agent to take cenvat credit on input services and charge service tax on the full amount billed to the exporter, with agent bills itemizing service components and applicable abatement on transportation.