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August 2012

Rebate of service tax to exporter — Notification No. 41/2012-ST, dated 29-6-2012.

By Tarun Ghia, Brijesh Cholera, Pratik Mehta, Chartered Accountants
Reading Time 1 mins
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This Notification deals with provision and procedure for rebate given in the form of refund of service tax paid on services utilised for goods exported. The rebate is available for export of both excisable and non-excisable goods.

For excisable goods, it applies to services used beyond the place of removal, for export of the goods. For non-excisable goods, it applies to services used for the export of the goods. Rebate is given as per the schedule of rates in the Notification; however if actuals are over twenty per cent more than the notified rate, the rebate can be claimed on the actuals as supported by documents.

The exclusions under definition of ‘input services’ in the Cenvat Credit Rules, as contained in clauses A, B, BA and C of Rule 2(l) apply to rebate also. Rebate is not available if Cenvat credit of service tax paid on specified service used for export of goods has been taken.

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