Zero Service Tax on VKGUY Duty Credit Scrip
under Sec 66B of the Finance Act 1994
[Service
Tax Notification No. 08 dated 18th April 2013]
In exercise of the powers conferred by sub-section (1)
of section 93 of the Finance Act, 1994 (32 of 1994)(hereinafter referred to as
the said Act), the Central Government, on being satisfied that it is necessary
in the public interest so to do, hereby exempts the taxable services provided
or agreed to be provided against a scrip by a person located in the taxable
territory, from the whole of the service tax leviable thereon under section 66B
of the said Act.
2. Application.
– This notification shall be applicable to the Vishesh Krishi and Gram Udyog
Yojana (Special Agriculture and Village Industry Scheme) duty credit scrip
issued to an exporter by the Regional Authority in accordance with paragraph
3.13.2 of the Foreign Trade Policy.
3. The
exemption shall be subject to the following conditions, namely:-
(a) that the
scrip is issued against exports of the products listed in Appendix 37A of the
Handbook of Procedures, Volume I:
Provided that the following
categories of exports (specified in paragraph 3.17.2 of the Foreign Trade
Policy) shall not be counted for calculation of export performance or for
computation of entitlement under the Vishesh Krishi and Gram Udyog Yojana,
namely:-
(i) the Export
Oriented Units or Electronic Hardware Technology Parks or Biotechnology Parks
which are availing direct tax benefits or exemption;
(ii) the export
of imported goods covered under Para 2.35 of the Foreign Trade Policy;
(iii) the
exports through transhipment, meaning thereby that exports originating in third
country but transhipped through India;
(iv) deemed
exports;
(v) the exports
made by Special Economic Zone units or Special Economic Zone products exported
through Domestic Tariff Area units;
(vi) the items,
which are restricted or prohibited for export under Schedule-2 of Export Policy
in ITC (HS);
(b) that the
scrip is registered with the Customs Authority at the port of registration
(hereinafter referred to as the said Customs Authority);
(c) that the
holder of the scrip, to whom taxable services are provided or agreed to be
provided shall be located in the taxable territory;
(d) that the
holder of the scrip who may either be the person to whom the scrip was
originally issued or a transferee-holder, presents the scrip to the said
Customs Authority along with a letter and an invoice or challan or bill, as the
case may be, issued under rule 4A of the Service Tax Rules, 1994 by the service
provider indicating details of his jurisdictional Central Excise Officer
(hereinafter referred to as the said Officer) and the description, value of the
taxable service provided or agreed to be provided and service tax leviable
thereon;
(e) that the
said Customs Authority, taking into account the debits already made under
notification number 95/2009-Customs, dated the 11th September, 2009,
notification No.32/2012-Central Excise, dated the 9th July, 2012 and this
exemption, shall debit the service tax leviable, but for this exemption in or
on the reverse of the scrip and also mention the necessary details thereon,
updates its own records and sends written advice of these actions to the said
Officer;
(f) that the
date of debit of service tax leviable, in the scrip, by the said Customs
Authority shall be taken as the date of payment of service tax;
(g) that in case
the service tax leviable as per the point of taxation determined in terms of
the Point of Taxation Rules, 2011 is prior to date of debit or that the rate of
tax determined in terms of rule 4 of the Point of Taxation of Rules, 2011, is
in excess of the rate of service tax mentioned in the invoice, bill or challan,
as the case may be, the holder of the scrip shall pay such interest or short-paid
service tax along with interest, as the case may be;
(h) that the
holder of the scrip presents the scrip debited by the said Customs Authority
within thirty days to the said Officer, along with an undertaking addressed to
the said Officer, that in case of any service tax short debited in the scrip,
shall pay such service tax along with applicable interest;
(i) that based
on the said written advice and undertaking, the said Officer shall verify and
validate, on the reverse of the scrip, the details of the service tax leviable,
which were debited by the said Customs Authority, and keep a record of payment
of such service tax and interest, if any;
(j) that the
service provider retains a copy of the scrip, debited by the said Customs
Authority and verified by the said Officer and duly attested by the holder of
the scrip, in support of the provision of taxable services under this
notification; and
(k) that the
said holder of the scrip, to whom the taxable services were provided or agreed
to be provided shall be entitled to avail the drawback or CENVAT credit of the
service tax leviable under section 66B of the said Act, against the service tax
debited in the scrip and validated by the said Officer.
4. Any amount
due to the Central Government under this notification shall be recoverable
under the provisions of the said Act and the rules made there under.
Explanation - For the purposes of this
notification,-
(A) “Foreign
Trade Policy” means the Foreign Trade Policy, 2009-14, published by the
Government of India in the Ministry of Commerce and Industry, vide notification
No.01 (RE 2012)/2009-2014, dated the 5th June, 2012, as amended from time to
time.
(B) “Handbook of
Procedures Volume 1” means the Handbook of Procedures Volume 1, 2009-14,
published by the Government of India in the Ministry of Commerce and Industry, vide
Public Notice No.01 (RE 2012)/2009-2014, dated the 5th June, 2012, as
amended from time to time.
(C) “Point of taxation”
shall have the same meaning assigned to it in clause (e) of rule 2 of the Point
of Taxation Rules, 2011.
(D) “Regional
Authority” means the authority competent to grant a duty credit scrip under the
Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992).
(E) “Scrip”
means Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and Village
Industry Scheme) duty credit scrip issued to an exporter by the Regional
Authority in accordance with paragraph 3.13.2 of the Foreign Trade Policy.
[F.No.354
/55/2013-TRU]