Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: cpt :: ACCOUNTING STANDARD :: VAT RATES :: TDS :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment
 
 
Service Tax »
 Why is the successful roll-out of the e-way bill necessary?
 How service tax became revenue lifeline for the Govt
 Three simple tricks to save income tax without investing fresh funds
 Goods and Services Tax (Compensation to States) Amendment Act, 2017.
 Services sector need to brought under Section 72A of the Income-Tax Act
 Simplifying GST: Creating a Grand Simple Tax
 The way ahead for goods and services tax
 Goods & Service Tax (GST): Recent Clarifications
 Tax payers can see status of returns filed on GSTN portal
 Export And Import Of Goods Under GST
 The Finance Resolution And Deposit Insurance Bill, 2017

Service exporters hit by sudden halt in tax refunds
October, 19th 2012

Software exporters, BPOs, consultants and other service exporters have been hit by a sudden halt in service tax refunds in the past few months. Service tax commissionerates across the country have been rejecting tax refund claims of these companies, which also include knowledge processing outsourcing firms and financial advisors, in the absence of clarity on aspects relating to input-cost credits.

As per service tax rules, input cost credits are chargeable on 'input services' used by companies (i.e. service exporters) for offering the service. The rule allows exporters to recover service tax paid on indirect costs to the company. Input services include expenses on installation of new office computers, catering services to employees, auditor or advisory services , couriers, event management, employee transportation, office rentals, manpower supply commission, leased communication lines, security, computer maintenance and annual office maintenance cost.

"Our refunds were coming till about four months ago. But our recent service tax refund submissions are not being entertained by commissioners. They are asking us frivolous questions with regards to our input-cost credits ," said a senior official of a leading BPO. As a concept, indirect taxes are levied on goods and services and recovered from consumers . However, if such a service is not consumed within the same country from where it originates, laws exempt exporters from taxes and also enable them to obtain refunds on procuring input goods and services that are used in such exported goods and services.

Service tax refunds have become very important to these companies as they are witnessing a downtrend in revenues due to the financial crisis in the West. "We are being asked to produce proof of nexus between input services and output services, despite producing the auditor's certificate certifying the nexus," said a senior auditor with a large IT firm. "Some times we are even asked to produce proof of export -- that the services are used and enjoyed outside India," the auditor said. Mumbai, Hyderabad, Pune and Bangalore are some of the commissionerates where service tax refunds have not been allowed, said tax consultants. "It is unfortunate that revenue authorities are coming out with frivolous grounds to reject the rightful claim of exporters at a time when exporters are reeling under the financial crisis in the western markets," said Sachin Menon, partner & national head - indirect tax, KPMG. "It is surprising to see that there is no logical approach in rejecting claims.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions