Before you apply for service tax refund, you should know when you can apply for service tax refund
| a) When there is excess payment of service tax and which cannot be used for squaring off future service tax liability | ||||||||||||
| b) When there is accumulated cenvat credit used in providing output service which has been exported without payment of service tax | ||||||||||||
Conditions to be satisfied for claiming excess payment of Service Tax Refund:
1.The excess payment has not been made on account of Interpretation of Law, Taxability, Classification or Valuation of any Exemption Notification .
2.In case an Assesse having Central Registration has paid Excess Service Tax because of delayed receipt of the details of the payment, such excess can be adjusted without limit .
3.In cases other than specified above-the maximum amount of service tax that can be adjusted is Rs one lac for a relevant month or quarter .
4.While claiming such adjustments, the details shall be intimated to the Superintiendent within 15 days from the date of such payment .
Documents to be submitted for claiming excess payment of Service Tax Refund
1.Application in prescribed Form –R.
2. Copy of TR-6/ GAR-7/PLA/ copy of return evidencing payment of duty.
3. Copy of invoices (in original)
4. Documents evidencing that duty has not been passed on to the buyer.
5. Any other document in support of the refund claim.
6. Any other document as prescribed by the Central Excise Officer.
Refer Rule 5 of CCR, 2004 read with Notification No: 05/06 CE (NT) dated 14.03.2006
Refer Under Section 11B of CEA, 1944 read with Section 83 of the Finance Act, 1994
How to Apply For Service Tax Refund
1.Go to aces.gov.in
2.Login in with your username and password
3.Select option refund request under REF
Conditions to be satisfied for claiming cenvat input used in export of services
1.The refund is allowed only in those circumstances where a manufacturer or provider of output service is not in a position to utilize the input credit or input service credit allowed under rule 3 of the said rules against goods exported during the quarter or month to which the claim relates (hereinafter referred to as ‘the given period’).
2.The refund of unutilised input service credit will be restricted to the extent of the ratio of export turnover to the total turnover for the given period to which the claim relates i.e.
Maximum refund Total CENVAT credit taken on input services during the given period export turnover Total turnover
Illustration: If total credit taken on input services for a quarter = Rs. 100
Export turnover during the quarter = Rs 250
Total Turnover during the quarter = Rs 500
Refund of input service credit under Rule 5 of the CENVAT Credit Rule, during the quarter 100*250/500 i.e. Rs 50
Explanation: For the purposes of condition no.5,-
1. “Export turnover” shall mean the sum total of the value of final products and output services exported during the given period in respect of which the exporter claims the facility of refund under this rule.
2. “Total turnover” means the sum total of the value of,-
(a) all output services and exempted services provided, including value of services exported;
(b) all excisable and non excisable goods cleared, including the value of goods exported;
(c) The value of bought out goods sold,
during the given period.
Refer Rule 5 of CCR, 2004 read with Notification No: 05/06 CE (NT) dated 14.03.2006
How to Apply For Service Tax Refund
The application in Form A, along with the prescribed enclosures and the relevant extracts of the records maintained under the Central Excise Rules, 2002, CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994,in original, are filed with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, before the expiry of the period specified in section 11B of the Central Excise Act, 1944(1 of 1944).
Following Documents have to be submitted
1.Refund application in Form A as annexed with the said notification.
2. Copy of the relevant Shipping Bills or Bills of Export duly certified by the
officer of customs to the effect that the goods have in fact been exported
(in case of final products).
3. Copy of invoices issued by the input service providers.
4. Copy of invoices for services exported.
5. Certificate from the bank certifying realization of export proceeds (in case
of export of output services).
6. Relevant extracts of the records maintained under the Central Excise
Rules, cenvat credit rules or service tax rules, in original, evidencing taking of
CENVAT credit, utilization of such credit in payment of excise duty or service
tax and the balance unutilized credit during the given period.
7. Statement of input invoices showing details of payment of service tax and
amount claimed.
8. The Table given in (DD) as provided under the Notification 07/2010-
CE(NT) dated 27.02.10, duly certified by a person authorized by the Board of
Directors(in the case of a limited company) or the proprietor or any partner
(in case of partnership firm) if the amount of refund claimed is less than Rs. 5
lakh, the Table shall also be certified by the Chartered Accountant who
audits the annual accounts of the exporter for the purposes of Companies
Act, 1956 or the Income Tax Act, 1961, as the case may be, if the amount of
refund claimed is more than Rs. 5lakh.
9. Declaration certifying the correctness of the particulars given by the claimant