Export-Refund-Notification1

Refund of service tax paid on taxable services used by exporters which are not input services but could be attributable to export activities

INSTRUCTION F. NO. 341/15/2007-TRU, DATED 17-4-2008

The Annual Supplement to the Foreign Trade Policy, 2004-09 announced on 19.4.2007 stated that service tax on services rendered and utilised by exporters would be exempted/remitted and the remission mechanism would be institutionalised after working out the modalities.

2. Committee of Secretaries (COS) examined the matter and decided that exemption from service tax could be notified and reimbursement of service tax based on receipts may be allowed provided linkage to export is established.

3. Accordingly, 16 taxable services have been notified and the service tax paid on these taxable services, which are attributable to exports even if they are not used as input services, shall be refunded to exporters [notification No.43/2007-ST, dated 29.11.07 and notification No.41/2007-ST, dated 06.10.07, as amended by notifications No.42/2007-ST, dated 29.11.07, No.03/2008-ST, dated 19.02.08 & No.17/2008-ST, dated 01.04.08].

4. Notifications No.41/2007-ST, dated 06.10.07 and No.43/2007-ST, dated 29.11.07 provide that the service tax paid on the specified taxable services by exporters shall be refunded in the prescribed manner subject to the conditions specified therein.

5. Board desires that refund of service tax paid on taxable services used by exporters for export goods should be disposed of expeditiously. The refund claims should be finalized within a maximum period of 30 days from the date of filing of refund claim. Commissioners are advised to put in place a system of review and monitoring the disposal of refund claims filed by the exporters.

6. Any refund claim filed by an exporter which is not disposed of within the maximum period of 30 days, for any reason whatsoever, should be reported by the Commissioner to the Chief Commissioner concerned in the proforma given below by the 10th of every month. If there is no such case, nil report should be sent.

Sr. No.	Name of the exporter	Date of filing of refund claim	Amount of refund sought	Reason for delay in processing the refund claim

7. Details of refund claims which are not disposed of within 45 days from the date of filing, for whatsoever reasons, should be sent by the Commissioner to Member (Service Tax) in the above mentioned proforma by email at j.kulasekhar@... so as to reach by 10th of the following month with copy to Chief Commissioner concerned. Special efforts may be taken to dispose of the refund claims filed by small and medium exporters expeditiously.

8. This issues with the approval of Secretary (Revenue).

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 19th February, 2008

Notification No.3/2008-Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.41/2007-Service Tax, dated the 6th October, 2007 which was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) by number G.S.R. 645(E) dated the 6th October, 2007, namely:-

In the said notification, in the Schedule, after Sr.No.9 and the entries relating thereto, the following shall be inserted, namely:-

(1)	(2)	(3)	(4)
“10.	section 65(105)(f)	Services provided by a courier agency to an exporter in relation to transportation of time-sensitive documents, goods or articles relating to export, to a destination outside India.	(i) the receipt issued by the courier agency specifies the importer-exporter (IEC) code number of the exporter, export invoice number, nature of courier, destination of the courier including name and address of the recipient of the courier, and (ii) the exporter produces evidence to link the use of courier service to export goods.
11.	section 65(105)(zzp)	Services provided to an exporter in relation to transport of export goods directly from the place of removal, to inland container depot or port or airport, as the case may be, from where the goods are exported.	(i) export goods are transported directly from the place of removal to inland container depot or port or airport, as the case may be, from where the goods are exported, (ii) invoice issued by the exporter in relation to export goods shall indicate the name of the inland container depot or port or airport from where the goods are exported, (iii) details of exporter’s invoice relating to export goods are specifically mentioned in the lorry receipt and the corresponding shipping bill, (iv) exporter shall declare in the refund claim indicating whether such service has been received from the said service provider for purposes other than for export.
12.	section 65(105)(zzzp)	Services provided to an exporter in relation to transport of export goods directly from the place of removal to inland container depot or port or airport, as the case may be, from where the goods are exported.	(i) export goods are transported directly from place of removal to inland container depot or port or airport from where the goods are exported, (ii) invoice issued by the exporter in relation to export goods shall indicate the inland container depot or port or airport from where the goods are exported, (iii) details of exporter’s invoice relating to export goods are specifically mentioned in the lorry receipt and the corresponding shipping bill, (iv) exporter shall declare in the refund claim indicating whether such service has been received from the said service provider for purposes other than for export.”

2. This notification shall come into force on the date of its publication in the Official Gazette.

[F.No.341/15/2007-TRU]

(Unmesh Wagh)

Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 645(E) dated the 6th October, 2007 and was last amended by notification No.42/2007-Service Tax, dated the 29th November, 2007 which was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) by number G.S.R. 739(E), dated the 29th November, 2007.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 1st April, 2008

Notification No.17/2008-Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.41/2007-Service Tax, dated the 6th October, 2007 which was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 645(E), dated the 6th October, 2007, namely:-

In the said notification, in the Schedule, after Sr.No.12 and the entries relating thereto, the following shall be inserted, namely:-

(1)	(2)	(3)	(4)
“13.	section 65(105)(h)	services provided by a custom house agent in relation export goods exported by the exporter.	exporter shall produce,- (i) invoice issued by custom house agent for providing services specified in column (3) specifying: (a) number and date of shipping bill, (b) description of export goods, (c) number and date of the invoice issued by the exporter relating to export goods, (d) details of all the charges, whether or not reimbursable, collected by the custom house agent from the exporter in relation to export goods, (ii) details of other taxable services provided by the said custom house agent and received by the exporter, whether or not relatable to export goods.
14.	section 65(105)(zm)	(i) services provided in relation to collection of export bills, (ii) services provided in relation to export letters of credit such as advising commission, advising amendment, confirmation charges.	exporter shall produce evidence to link the use of services specified in column (3) for goods exported.
15.	section 65(105)(zzb)	Services provided by a commission agent, located outside India, and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.	(i) exporter shall provide agreement or contract or any other document, requiring the commission agent located outside India to provide services to the exporter in relation to sale of export goods, outside India, (ii) exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill, (iii) commission sought to be remitted is not on export of a canalized item, project exports, or exports financed under lines of credit extended by Government of India or EXIM Bank, or exports made by Indian partners towards equity participation in an overseas joint venture or wholly owned subsidiary, (iv) documents evidencing actual export of goods, (v) documents evidencing actual payment of commission to the commission agent, (vi) refund of service tax shall be restricted to actual amount of service tax paid or service tax calculated on two per cent. of FOB value of export goods, whichever is less.”

2. This notification shall come into force on the date of its publication in the Official Gazette.

[F.No.341/15/2007-TRU]

(G.G. Pai)

Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 645(E), dated the 6th October, 2007 and was last amended by notification No.3/2008-Service Tax, dated the 19th February, 2008 which was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 94(E), dated the 19th February, 2008.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 29th November, 2007.

Notification No.43/2007-Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service, specified in sub-clause (zzo) of clause (105) of section 65 of the said Finance Act (hereinafter referred to as the said service), provided in relation to business exhibition of goods by the organiser of business exhibition to a manufacturer of goods falling under Chapters 57, 61, 62 and 63 of the Central Excise Tariff Act, 1985 (hereinafter referred to as the said manufacturer), from the whole of the service tax leviable thereon under section 66 of the said Finance Act, subject to the following conditions, namely:-

(a) prior to availment of exemption under this notification, the said manufacturer has exported goods falling under Chapters 57, 61, 62 and 63 of the Central Excise Tariff Act, 1985 (hereinafter referred to as the said goods) and is registered as exporter of said goods with any of the following organisations, namely:

(i) Apparel Export Promotion Council;

(ii) Carpet Export Promotion Council;

(iii) The Cotton Textiles Export Promotion Council;

(iv) Handloom Export Promotion Council;

(v) The Indian Silk Export Promotion Council;

(vi) Powerloom Development & Export Promotion Council;

(vii) Synthetic & Rayon Textiles Export Promotion Council;

(viii) Wool & Woollens Export Promotion Council;

(ix) Wool Industry Export Promotion Council;

(x) Jute Manufacturers Development Council;

(b) the exemption shall be claimed by the said manufacturer for the said service received;

(c) the exemption claimed by the said manufacturer shall be provided by way of refund of service tax paid on the said service;

(d) the said manufacturer claiming the exemption has actually paid the service tax on the said service;

(e) no CENVAT credit of service tax paid on the said service has been taken under the CENVAT Credit Rules, 2004.

2. The exemption contained in this notification shall be given effect to in the following manner, namely:-

(a) the person liable to pay service tax under section 68 of the said Finance Act shall pay service tax as applicable on the said service provided to the said manufacturer and such person shall not be eligible to claim exemption for the said service;

(b) the said manufacturer shall claim the exemption by filing a claim for refund of service tax paid on the said service to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture or warehouse;

(c) the claim for refund shall be filed on a quarterly basis, within sixty days from the end of the relevant quarter during which payment of the value of the said service and the service tax thereon has been made;

(d) the refund claim shall be accompanied by documents evidencing payment of service tax on the said service for which claim for refund of service tax paid is filed;

(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said service has been actually used by the said manufacturer in relation to business exhibition of the said goods manufactured by him, refund the service tax paid on the said service.

3. The exemption contained in this notification shall be valid upto 31st March, 2009.

4. This notification shall come into force on the date of its publication in the Official Gazette.

[F.No.341/15/2007-TRU]

(G.G. Pai)

Under Secretary to the Government of India

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 29th November, 2007

Notification No.42/2007-Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.41/2007-Service Tax, dated the 6th October, 2007 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 645(E) dated the 6th October, 2007, namely:-

In the said notification, in the Schedule, after Sr.No.7 and the entries relating thereto, the following shall be inserted, namely:-

(1)

(2)

(3)

(4)

“8.

Section 65(105)(zzzd)

Specialized cleaning services namely disinfecting, exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter.

(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring such specialized cleaning of containers used for export of said goods; and

(ii) the service provider is accredited by the competent statutory authority to provide such specialized cleaning services.

Section 65(105)(zza)

Services provided for storage and warehousing of said goods.

(i) the said goods are stored in a storage or warehouse which is approved by the competent authority; and

(ii) the storage or warehouse is exclusively used for the purpose of storage or warehousing of export goods.”

2. This notification shall come into force on the date of its publication in the Official Gazette.

[F.No.341/15/2007-TRU]

(G.G. Pai)

Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, Part I, section 3, sub-section (i), vide number G.S.R. 645(E) dated the 6th October, 2007.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 6th October, 2007.

Notification No.41/2007-Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.40/2007-Service Tax, dated the 17th September, 2007 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 601(E) dated the 17th September, 2007, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in column (3) of the Schedule (hereinafter referred to as specified services) received by an exporter and used for export of goods (hereinafter referred to as said goods), from the whole of the service tax leviable thereon under section 66 and section 66A of the said Finance Act, subject to the conditions specified in the corresponding entry in column (4) of the Schedule:

Provided that–

(a) the exemption shall be claimed by the exporter of the goods for the specified services received and used by the exporter for export of the said goods;

(b) the exemption claimed by the exporter shall be provided by way of refund of service tax paid on the specified services used for export of the said goods;

(d) no CENVAT credit of service tax paid on the specified services used for export of said goods has been taken under the CENVAT Credit Rules, 2004;

(e) the said goods have been exported without availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995;

(f) exemption or refund of service tax paid on the specified services used for export of said goods shall not be claimed except under this notification.

2. The exemption contained in this notification shall be given effect to in the following manner, namely:-

(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the exporter and used for export of the said goods, and such person shall not be eligible to claim exemption for the specified services:

Provided that where the exporter of the said goods and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;

(b) the exporter shall claim the exemption by filing a claim for refund of service tax paid on specified services:

Provided that–

(i) the manufacturer-exporter of the said goods shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture or warehouse, and

(ii) the exporter, other than a manufacturer-exporter, shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;

(c) the exporter who is not registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Finance Act or the rules made thereunder, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;

(d) the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the exporter within seven days from the date of receipt of the said Form;

(e) the claim for refund shall be filed on a quarterly basis, within sixty days from the end of the relevant quarter during which the said goods have been exported:

Provided that the said goods shall be deemed to have been exported on the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962);

(f) the refund claim shall be accompanied by documents evidencing,-

(i) export of the said goods;

(ii) payment of service tax on the specified services for which claim for refund of service tax paid is filed;

(iii) wherever applicable, a copy of the written agreement entered into by the exporter with the buyer of the said goods, as the case may be;

(g) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used for export of said goods, refund the service tax paid on the specified services used for export of said goods;

(h) where any refund of service tax paid on specified services used for export of said goods has been paid to an exporter but the sale proceeds in respect of the said goods have not been realised by or on behalf of the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.

Schedule

Sr. No.	Taxable Services		Conditions
	Classification under Finance Act, 1994	Description
(1)	(2)	(3)