Export of Services: BY PL - Subramanian
Export of Services: BY PL - Subramanian
Export of Services: BY PL - Subramanian
BY
PL.Subramanian
[email protected]
25270452
9821807128
Export of Services
Basic Principle
“Export local products and Services and not
local taxes”
10
Export of Services
Recipient Based Criteria – Not used in
relation to commerce or industry
The recipient of service is located outside
India at the time of rendering the services
Services provided from India and used
outside India
Payment in convertible foreign exchange
Export of Services
Recipient Based Criteria – Used in relation
to commerce or industry and service
recipient has an establishment in India
The recipient of service is located outside
India at the time of rendering the services
Services provided from India and used
outside India
Payment in convertible foreign exchange
Service is ordered from outside India
Export of Services
Recipient Based Criteria – Services
covered
Example: Banking and Other Financial
Services, Business Auxiliary services,
Business Support services, Computer
Network services, Intellectual Property
services, Management Consultant’s
services, Manpower Recruitment services
Export of Services
Services not classified:
Air Transport of Passengers embarking in
India for International Journey
Transport of persons by a Cruise Ship
embarking in any port in India
Export of Services
Situs of service Provided- In the cases of
following services, the service shall be
treated as provided in the country in which
the tangible goods are located at the time of
provision of service:
Management, maintenance or repair
service.
Technical testing and analysis service.
Technical inspection and certificate service.
Export of Services
Benefits available
Export of Services without payment of
Service Tax
Rebate Service Tax paid on Export of
Services
Rebate of Service tax and Excise Duty paid
on Input Services and Inputs; or
Refund of unutilised CENVAT Credit
Export of Services
Rebate of Service Tax paid
If service tax is paid at the time of export of
service – service tax is refundable
Exported to countries other than Nepal and
Bhutan
Amount of rebate is not less than Rs.500
Claim application has to be filed with
Assistant Commissioner
Form ASTR-1
Export of Services
Rebate of Service Tax paid
Application has to be accompanied by
documentary evidence of receipt of
payment in convertible foreign exchange
Declaration
Export of Services
Rebate of Service Tax paid on inputs –
excise duty paid on inputs or service tax
paid on input service is eligible for refund
Taxable service exported
Payment received in convertible foreign
exchange
Excise duty paid input or service tax paid
input service is used in providing taxable
service
Export of Services
Rebate of Service Tax paid on inputs
Rebate is not less than Rs.500
No CENVAT Credit availed on inputs and
input services availed
Declaration –Before export of service –
Description, quantity, value, rate of duty and
duty payable on inputs and input services
Export of Services
Rebate of Service Tax paid on inputs
Application to the Assistant Commissioner
Form ASTR –2
Application with documentary evidence
Export of Services
Refund of unutilised CENVAT Credit
Taxable service exported
Export as per procedure
Claim once in a calendar quarter – If more
than 50% exported , once in a month
CENVAT Credit not utilised due to export
Quantum – Refund = (Total CENVAT Credit
taken during the period X Export
turnover)/Total turnover
Export of Services
Refund of unutilised CENVAT Credit
Application in Form A
Within one year
Application with the following documents –
Shipping bill, Copy of invoices, BRC,
Relevant extracts of records under
CENVAT Rules, Service Tax Rules
Export of Services
Service tax on secondary service providers
Another question raised is about the taxability of secondary
services which are used by the primary service provider for
the export of services, Since the secondary services
ultimately gets consumed/merged with the services that are
being exported no service tax would be leviable on such
secondary services. However in case where the secondary
service gets consumed in part or toto for providing service in
India, the service tax would be leviable on the secondary
service provider. For this purpose both primary and
secondary service providers would maintain the records
deemed fit by them to identify the secondary services with
services that are being exported –Circular 56/5/2003 dated
25th April 2003
Export of Services
Circular 56/5/2003 dated 25th April, 2003
withdrawn by Circular 93/4/2007-ST dated
10th May 2007
Effect of Withdrawal
Export of Services
SEZ and Service TAX- Service provided by
the Domestic Tariff Area Unit -Notification
4/2004-ST dated 31-3-2004
“ Exempts taxable service of any description
provided to a developer of Special
Economic Zone or (including a Unit under
construction) Unit by any service provider
for consumption of the services within such
SEZ, from the whole of service tax
payable.”
Export of Services
SEZ and Service TAX- Effective 20-5-2009,
if a service is wholly consumed within SEZ
itself, the service provider is not required to
charge service tax at all. In the case of
services consumed partly or fully by SEZ
outside the SEZ, it has to apply for refund.
Export of Services
Export Oriented Unit and Service Tax- No
special exemption is provided
Export of Services
Export of Software
Software Development exempt from
Service tax- Not eligible for refund of
CENVAT Credit
Software is Goods as per Excise Tariff Act
– Eligible for Duty Drawback
Brand Duty Drawback
Export of Services
Any Question?
Export of Services
THANK YOU
PL.Subramanian
[email protected]
25270452
9821807128