Please Help: refund of service tax
Posted Date : 07-Dec-2011 , 02:09:43 pm | Posted By Rajiv Mittal
There is a manufacturing company which has 50% sales in India and the rest 50% are deemed exports. The company pays service tax for the following services: Telephone Bill, Courier service, Insurance fee, Rent, Transporter service etc. The Company wants to get refund for the service tax paid for these services. Can it get the refund of the amount of service Tax Paid if the company itself is not providing any services taxable under service tax?
Category : Service Tax | Answers : 1 | Comments : 1 | Hits : 412
Answers
Answer By: CA VIPIN GARG
Dear Rajiv Ji, If the concern is a manufacturing one then why r u insisting for the refund, the manufacturing concern can utilise the payment of service tax towards payment of Excise duty on the manufacturing product.
As per law also the refund is possible only when the assessee can't utilise the input credit but in the above case it looks like that they can very well utilise the input of service tax towards payment of excise duty.
One thing i also want to share with you (I don't know whether you are aware about the same or not) that service tax paid on telephone expenses related to employees' telephone can not be availed from 01.04.2011.
Hope you got the answer you were looking for, have a nice day Rajiv Ji.........
As per law also the refund is possible only when the assessee can't utilise the input credit but in the above case it looks like that they can very well utilise the input of service tax towards payment of excise duty.
One thing i also want to share with you (I don't know whether you are aware about the same or not) that service tax paid on telephone expenses related to employees' telephone can not be availed from 01.04.2011.
Hope you got the answer you were looking for, have a nice day Rajiv Ji.........
Comments
Rajiv Mittal
08-Dec-2011 , 12:46:14 pmThe manufacturing concern lies in a zone exempt from Excise duty and the telephone expenses relate to the concern and not employees. Please tell whether now the concern can avail refund of service tax and under which related notification and the procedure to claim refund.