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: due date for vat payment :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ACCOUNTING STANDARDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: form 3cd :: VAT RATES :: TDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

MoF, commerce dept clash on tax refund to exporters
February, 02nd 2009

The finance and commerce ministries have locked horns yet again on the issue of reimbursement of service tax to exporters. The
commerce ministry has demanded details of all clearances made so far by the tax authorities after exporters complained that finance ministry has cleared less than 5% of refund claims and rejected the rest for flimsy grounds.

A commerce department official told ET exporters had complained that even though the finance ministry allowed service tax
reimbursement on paper, very little was actually being refunded as the rules for making claims were ambiguous and unrealistic. We have asked the finance ministry to give us details of the claims made and the refunds given. Wherever we find that claims have been rejected on unrealistic grounds, we are going to contest that, the official said.

The finance ministry has allowed exporters to claim refunds on 19 services. It also recently amended a rule that prevented exporters claiming duty drawback (refund of taxes on inputs) from claiming service tax refund. However, exporters say there were so many problem areas in the rules that they were discouraged from filing claims. To my knowledge, about 26 cases were filed for drawback. Of these, only one actually got refund and that too was restricted to 40% of the claim amount filed for, Federation of Indian Export Organisations director general Ajay Sahai said.

The procedure for filing refunds is unclear as there is lack of clarity about where to claim refunds in case a company had a factory located at one place and branch offices at another, Mr Sahai said.

A stress on linkage between service availed and exports made was also making things difficult for exporters, as for a number of services it was very difficult to directly link it to exports. For instance, for payment made to customs house agents, it is not possible for one to conclusively prove that it was for exports and not for imports.

One has to understand that service is a non-tangible and cannot be treated like goods, Mr Sahai added. Another rule slowing down refund claims was the finance ministrys insistence that refunds would be made only after proof of realisation of exports was given. Exporters claim often there was a time lag between shipments and payments. It was unfair to keep exporters hanging till they realise payment, they argue.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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