The Central Board of Excise and Customs (CBEC) has further relaxed the procedures for refund of tax paid on specified services used for export of goods. The board has directed its field officials to pay refund claims in 30 days.

Even exporters that are not registered with the central excise will now be able to file a refund claim. To get their refund, they would have to file a claim with the excise authority having jurisdiction over their factory. The authority will issue a service tax code to facilitate a refund.

"For the purpose of compliance verification, random checks should be carried out independently and where the refund amount is significant, post refund audit may also be carried out," the CBEC circular said.

The simplified procedure for service tax refund, which was unveiled in April for exporters with a good track record, will cover all exporters with a turnover in excess of Rs 5 crore in the current or preceding financial year, public sector units including those run by state governments, star export houses, manufacturer-exporters registered with the board that have been exporting during the previous two financial years and have minimum export of Rs 1 crore and all export-oriented units.

Earlier, the CBEC had extended the period of filing for a refund claim from 60 days to six months. Besides, it had also allowed refunds on testing services without any copy of an agreement with the buyer of goods, if such testing and analysis were statutorily stipulated by domestic rules and regulations.

See: Circulars and Notifications referred:

Service Tax - 106/9/2008-ST - dated - 11-12-2008

Service Tax - 101/4/2008-ST - dated - 12-05-2008

Notification No. 32/2008-ST, dated 18.11.2008

Notification No. 41/2007-ST - dated - 6-10-2007

F. No. 341/15/2007-TRU, dated 17.4.2008

circular No. 828/5/2006-CX dated 20.4.2006

 

Service tax refund procedures expedited: streamlined claims, wider exporter eligibility, and compliance checks to speed refunds. CBEC has directed field officers to pay validated service tax refund claims for services used in export within 30 days. Exporters not registered with central excise may file a refund claim with the excise authority having jurisdiction over their factory, which will issue a service tax code to facilitate refund processing. Independent random checks are required for compliance verification and significant refunds may be subject to post-refund audit.