Notification under rule 6A of Service Tax Rules

Posted: 22/06/2012 in Notifications, Service Tax

Notification No.39/2012 – Service Tax dated 20th June, 2012

F. No. 334/1/2012-TRU

GSR …. (E). In exercise of the powers conferred by rule 6A of the Service Tax Rules, 1994 (hereinafter referred to as the said rules), the Central Government hereby directs that there shall be granted rebate of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all  input services (herein after referred to as ‘input services’), used in providing  service exported in terms of rule 6A of the said rules, to any country other than Nepal and Bhutan, subject to the conditions, limitations and procedures specified hereinafter,-

2. Conditions and limitations:-

(a) that the  service has been exported in terms of rule 6A  of the said rules;

(b) that the duty on the inputs, rebate of which has been claimed, has been paid  to the supplier;

c) that the service tax and cess, rebate of which has been claimed, have been paid on the input services to the provider of service;

Provided if the person is himself is liable to pay for any input services; he should have paid the service tax and cess to the Central Government.

(d) the total amount of rebate of duty, service tax and cess admissible is not less than  one thousand  rupees;

(e)no CENVAT credit has been availed of on inputs and input services on which rebate has been claimed; and

(f) that in case,-

(i)     the duty or, as the case may be, service tax and cess, rebate of which has been claimed, has not been paid; or

(ii)    the  service, rebate for which has been claimed, has not been exported; or

(iii)  CENVAT credit has been availed on inputs and input services on which rebate has been claimed, the rebate paid, if any, shall be recoverable with interest in accordance with  the provisions of section 73 and section 75 of the Finance Act, 1994 (32 of 1994)

3. Procedure.

3.1  Filing of Declaration.- The provider of  service to be exported shall, prior to date of export of  service, file a declaration with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, specifying the  service intended to be exported with,-

(a)    description, quantity, value, rate of duty and the amount of duty payable on inputs actually required to be used in providing service to be exported;

(b)   description, value and the amount of service tax and cess payable on input services actually required to be used in providing  service to be exported.

3.2  Verification of declaration.- The Assistant Commissioner of Central Excise or the  Deputy Commissioner of Central Excise, as the case may be, shall verify the correctness of the declaration filed prior to such export of  service, if necessary, by calling for any relevant information or samples of inputs and if after such verification, the Assistant Commissioner of Central Excise or the  Deputy Commissioner of Central Excise is satisfied that there is no likelihood of evasion of duty, or as the case may be, service tax and cess, he may accept the declaration.

3.3  Procurement of input materials and receipt of input services.- The provider of  service to be exported shall,-

(i)     obtain the inputs required for use in providing   service to be exported, directly from a registered factory or from a dealer registered for the purposes of the CENVAT Credit Rules, 2004 accompanied by invoices issued under the Central Excise Rules, 2002;

(ii)   receive the input services required for use in providing  service to be exported and an invoice, a bill or, as the case may be, a challan issued under the provisions of Service Tax Rules, 1994.

3.4  Presentation of claim for rebate.-

(a)    (i) claim of rebate of the duty paid on the inputs or the service tax and cess paid on input services shall be filed with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, after the  service has been exported;

(ii) such application shall be accompanied by, –

(a)    invoices for inputs issued under the Central Excise Rules, 2002 and invoice, a bill, or as the case may be, a challan for input services issued under the Service Tax Rules, 1994,  in respect of which rebate is claimed;

(b)   documentary evidence of receipt of payment against  service exported, payment of duty on inputs and service tax and cess on input services used for providing  service exported, rebate of which is claimed;

(c)    a declaration that such  service, has been exported in terms of rule 6A of the said rules, along with documents evidencing such export.

(b)   The jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having regard to the declaration, if satisfied that the claim is in order, shall sanction the rebate either in whole or in part.

Explanation 1.- For the purposes of this notification “service tax and cess” means,-

(a)    service tax leviable under section 66  or section 66B of the Finance Act, 1994 (32 of 1994);

(b)   education cess on taxable service levied under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and

(c)    Secondary and Higher Education Cess on taxable services levied under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007).

Explanation 2.- For the purposes of this notification “duty” means, duties of excise leviable under the following enactments, namely:-

(a)    the Central Excise Act, 1944 (1 of 1944);

(b)   the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957)

(c)    the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(d)   National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by section 169 of the Finance Act, 2003 (32 of 2003), section 3 of the Finance Act, 2004 (13 of 2004) and further amended by section 123 of the Finance Act, 2005 (18 of 2005);

(e)    special duty of  excise collected under a Finance Act;

(f)    additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003);

(g)   Education Cess on excisable goods as levied under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004); and

(h)   the additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005).

(i)     the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007).

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Click here to view the complete text of the above Notification- Notification No.39/2012 – Service Tax dated 20th June, 2012.

Source: Directorate of Service Tax.

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