Exporters allowed Refund of Commission Agents, CHA & Banking Services

NEW DELHI. The Government has allowed Refund of Service Tax paid by exporters on services provided by a custom house agent in relation to export goods exported by the exporter,  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, and Banking and Financial services provided in relation to collection of export bills, and services provided in relation to export letters of credit such as advising commission, advising amendment, confirmation charges. Notification No.17/2008-Service Tax dated 1st April 2008 has been issued in this regard.

 

NOTIFICATION No 17/2008-Service Tax

Dated: April 1, 2008

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) d etails 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.

(Source: Allindiantaxes)

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9 Comments

  1. rajeev j. doshi said,

    April 15, 2008 at 12:28 pm

    in respect of services included vide Not. 17/2008-ST dated 01.04.2008 for refund of service tax, the benefit of the notification would be available to specified services availed after 01.04.2008 or to the services availed before 01.04.2008 but the claim is preferred after 01.04.2008 is not clear.

  2. mahendra c. mehta said,

    May 16, 2008 at 1:57 pm

    how should we prepare and submit to whom the applicatins for refund
    of service tax paid on export services for the accounting year 2007-2008
    and beginning 2008-2009.
    please advise. thanks.
    mahendra c. mehta.

  3. July 7, 2008 at 4:59 pm

    in respect of services included vide Not. 17/2008-ST dated 01.04.2008 for refund of service tax, the benefit of the notification would be available to specified services availed after 01.04.2008 or to the services availed before 01.04.2008 but the claim is preferred after 01.04.2008 is not clear.

    how should we prepare and submit to whom the applicatins for refund
    of service tax paid on export services for the accounting year 2007-2008
    and beginning 2008-2009.
    please advise. thanks.

  4. July 7, 2008 at 5:17 pm

    in respect of services included vide Not. 17/2008-ST dated 01.04.2008 for refund of service tax, the benefit of the notification would be available to specified services availed after 01.04.2008 or to the services availed before 01.04.2008 but the claim is preferred after 01.04.2008 is not clear. frist we have manufacturer than exporter so ,either we can claim for refund only or can availed these service in cenvat credit against our out-put service also

  5. Jignesh Patel said,

    November 20, 2008 at 9:04 am

    Hi,
    Can anyone explain to me whether service tax is payable on export comission remmitance? If it is payable then can someone please send me the notification or link with the notification.
    .please advice thanks

  6. A. P. Pillai said,

    February 7, 2009 at 3:29 pm

    We want to kow the resent nofication of services tax refund for exporters, we already filled the refund appilaction for the fiancial year 07-08. subsequently is was rejected by the ST commisioner by giving the reason that we are not eligible for the refund since we getting the 1% dutydrawback on FOB value of export invoice.
    There was an article in Economic Times this week that govt had announced a relaxation for exported related to service tax refund, but we are unable to get the copy of notification.

    A.R.Pillai

  7. A.R.Pillai said,

    February 7, 2009 at 3:33 pm

    We want to kow the resent nofication of services tax refund for exporters, we already filled the refund appilaction for the fiancial year 07-08. subsequently is was rejected by the ST commisioner by giving the reason that we are not eligible for the refund since we getting the 1% dutydrawback on FOB value of export invoice.
    There was an article in Economic Times this week that govt had announced a relaxation for exported related to service tax refund, but we are unable to get the copy of notification.

    A.R.Pillai

  8. Vrunda Mhatre said,

    February 7, 2009 at 3:34 pm

    We want to kow the resent nofication of services tax refund for exporters, we already filled the refund appilaction for the fiancial year 07-08. subsequently is was rejected by the ST commisioner by giving the reason that we are not eligible for the refund since we getting the 1% dutydrawback on FOB value of export invoice.
    There was an article in Economic Times this week that govt had announced a relaxation for exported related to service tax refund, but we are unable to get the copy of notification.

    Vrunda Mhatre

  9. Nirmal Jain said,

    July 20, 2009 at 6:34 pm

    We want to know the resent notification of service tax refund for exporters, we already filled the refund application for the financial year 2007-2008. Subsequently is was rejected by the ST commissioner by giving the reason that we are not filling ST-3 form (service tax return). Is it compulsory for filling of return for refund claim?, because we are not charged service tax for any services, only we are paid service tax to party for exports of goods.


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