Refund claim

[Guest]

One STPI unit has to pay commission on export to a foreign company. Is it necessary for the Company to pay first service tax on import of services and thereafter file claim for refund or there may be any procedure for not paying service tax on import of these service.

AI Summary

Debate on Service Tax: Pay Before Claiming Refund on Imported Services Per Export of Service Rules. Policy Simplification Urged. A discussion on a forum addresses whether a company must pay service tax on imported services before claiming a refund. One participant explains that the Export of Service Rules allow for non-payment of service tax only on directly exported services, not on interim services, requiring payment first and then a refund claim. Another participant agrees but criticizes the policy of collecting and refunding service tax, suggesting it benefits certain individuals financially and is not in the national interest. They argue for policy simplification to avoid unnecessary resource wastage and potential oversupply of services.