Service Tax Exemption on Commission Agents of Exporters Set at 10% of
Export Value
[Service
Tax Notification No. 42 dated 29th June 2012]
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, being satisfied that it is necessary in the public
interest so to do, hereby exempts the taxable service received by an exporter
of goods (hereinafter referred to as the exporter) and used for export of goods
(hereinafter referred to as the said goods), of the description specified in
column (2) of the Table below (hereinafter referred to as the specified
service), from so much of the service tax leviable thereon under section 66B of the said Act, as is in excess of the
service tax calculated on a value up to ten per cent of the free on board value
of export goods for which the said specified service has
been used, subject to the conditions specified in column (3) of the said Table,
namely:-
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Table |
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SNo. |
Description of the taxable service |
Conditions |
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(1) |
(2) |
(3) |
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1. |
Service provided by a commission agent located
outside India and engaged under a contract or agreement or any other document
by the exporter in India, to act on behalf of the exporter, to cause sale of
goods exported by him. |
(1) The exporter shall declare the amount of commission
paid or payable to the commission agent in the shipping bill or bill of
export, as the case may be. (2) The exemption shall be limited to the service tax calculated on a
value of ten per cent of the free on board value of export goods for which the said service has been used. (3) The exemption shall not be available on the export of canalised item, project export, or export financed under
lines of credit extended by the Government of India or EXIM Bank, or export
made by Indian partner in a company with equity participation in an overseas
joint venture or wholly owned subsidiary. (4) The exporter shall submit with the half-yearly return after
certification of the same as specified in clause (g) of the proviso (i) the original documents
showing actual payment of commission to the commission agent; and (ii) a copy of the agreement or contract entered into between the
commission agent located outside India and the exporter in relation to sale
of export goods outside India: |
Provided that-
(a) the
exemption shall be available to an exporter who,-
(i) informs the Assistant Commissioner of Central Excise or the
Deputy Commissioner of Central Excise, as the case may be, having jurisdiction
over the factory or the regional office or the head office, as the case may be,
in Form EXP3 appended to this notification, before availing the said exemption;
(ii) is
registered with an export promotion council sponsored by the Ministry of
Commerce or the Ministry of Textiles, as the case may be;
(iii) is
a holder of Import-Export Code Number;
(iv) is
registered under section 69 of the said Act;
(v) is liable to pay service tax
under sub-section (2) of section 68 of said Act, read with item (G) of
sub-clause (i) of clause (d) of sub-rule
(1) of rule 2 of the Service Tax Rules,1994, for the specified service;
(b) the
invoice, bill or challan, or any other document by
whatever name called issued by the service provider to the exporter, on which
the exporter intends to avail exemption, shall be issued in the name of the
exporter.
(c) the
exporter availing the exemption shall file the return in Form EXP4, every six
months of the financial year, within fifteen days of the completion of the said
six months;
(d) the exporter shall submit
with the half yearly return, after certification, the documents in original
specified in clause (b) and the certified copies of the documents specified in
column (3) of the said Table;
(e) the
documents enclosed with the return shall contain a certification from the
exporter or the authorised person, to the effect that specified service to which
the document pertains, has been received and used for export of goods by
mentioning the specific shipping bill number on the said document.
(f) where the exporter is an individual or a proprietorship concern
or an HUF or a partnership firm, the documents enclosed with the return shall
be certified by the exporter himself and where the exporter is any other
person, the documents enclosed with the return shall be certified by the person
authorised by the Board of Directors
or any other competent person;
(g) where the amount of commission charged in
respect of the specified service exceeds ten per cent. of the free on board
value of the export then, the service tax shall be paid within the period
specified under rule 6 of the Service Tax Rules, 1994, on such amount, which is
in excess of the said ten per cent;
2. This notification shall come
into force on the 1st day of July, 2012.
Form EXP3
[See item (i) of clause (a) of proviso ]
S.No----------------------
(to be filled in by the office of
jurisdictional Assistant / Deputy Commissioner)
To,
The Deputy Commissioner /Assistant Commissioner of Central Excise
Sir,
I/We intend to avail of the exemption from service tax under
Notification No.
/2012-ST, dated
.June, 2012 in respect of services provided
by a commission agent located outside India, which have been used for export of
goods and the relevant particulars are as follows:
1. Name of the exporter
2. Service Tax Registration
No
.
3. Division
Commissionerate
4. Membership No. the Export
Council
.
5. Name of the Export
Council
6. Address of the registered /
head office of exporter:
..
7. Tel. No. and e-mail ID of
the exporter
..:
8. Import -Export Code No
..
9. Details of Bank Account
(Name of Bank, branch address and account number)
..
I/we undertake that I/we shall comply with the conditions laid down in
the said notification and in case of any change in aforementioned particulars;
I/We shall intimate the same.
Date:
..
Place:
..
Signature and full address
of Exporter
(Affix stamp)
Receipt (to be given by office of Assistant Commissioner/ Deputy
Commissioner having jurisdiction) Received Form EXP1 dated --/--/-- submitted
by __________( name of the exporter). The said
intimation is accepted and given acknowledgment No. _____(
S. No. Above)
For Assistant, / Deputy Commissioner
(Stamp)
Form EXP4
[See clause (c) of proviso]
To,
The Deputy Commissioner /Assistant Commissioner of Central Excise
Sir,
I/We have availed of exemption of service tax
under Notification No.
/2012-ST, dated
, 2012 in respect of services
provided by a commission agent, located outside India and have used the same
for export of goods and the relevant particulars are as follows:
1. Name of the exporter
..
2. Address of the registered / head office of exporter
3. Tel. No. and e-mail ID of the exporter
..:
4. Service Tax Registration No
.
5. Division
Commissionerate
6. Membership No. Of the Export Council
7. Import Export Code No
..
8. Name of the Export Council
..
9. Details of Bank Account (Name of Bank, branch address and account
number)
..
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Table-A |
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Sr. |
Details of goods exported (on
which exemption of service tax availed) during the six months ending
on
.. |
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Details of Shipping Bill/ Bill
of export (Please enclose self attested copy of
Shipping Bill or Bill of Export) and Details of goods exported (in case of exports of more
than one commodity, please fill in the proforma, commodity-wise) |
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No. |
Date |
Date of Let export
order |
Export invoice
no |
Date |
Description of
goods exported |
Quantity
(please mention the unit) |
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Table- B |
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Details
of specified service used for export of goods, covered under the Shipping Bill
or Bill of Export mentioned in Table A in respect of which the exemption has
been availed during the six months ending on
|
Details of documents attached showing the use of
such service for export, the details of which are mentioned in Table A (self attested) |
Total amount of service tax claimed as exemption (rupees
in lakhs) |
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Name of service provider |
Address of service provider |
Invoice No. |
Date |
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9. Declaration:-
I / We hereby declare that-
(i) I have complied with all the conditions mentioned in Notification
No.
/2012-ST, dated
. June, 2012;
(ii) the
information given in this application form is true, correct and complete in
every respect and that I am authorised to sign on behalf of the
exporter;
(iii) no
CENVAT credit of service tax paid on the specified service used for export of
said goods taken under the CENVAT Credit Rules, 2004;
(iv) I / we, am/ are enclosing
all the required documents. Further, I understand that failure to file the
return within stipulated time or non-enclosure of the required document, duly
certified, would debar me/us for the refund claimed aforesaid.
Date:
..
Place:
Signature and full address
of Exporter
(Affix stamp)
Enclosures: as above
[F. No.334/1/2012 -TRU]