Circular No. 149/18/2011-ST
F.No.354/66/2011-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Tax Research Unit)
146-F, North Block,
New Delhi, 16th December, 2011
To
Chief Commissioners of Customs (All)
Chief Commissioners of Customs and Central Excise (All)
Chief Commissioners of Central Excise & Service Tax (All)
Director General of Export Promotion
Director General of Service Tax
Commissioners of Customs (All)
Commissioners of Customs and Central Excise (All)
Commissioners of Central Excise and Service Tax (All)
Commissioners of Service Tax (All)
Madam/Sir,
Subject: Service Tax Refund to exporters through the Indian Customs EDI System (ICES) — regarding.
So
far Service Tax Refund (STR) was made available to exporters (other
than SEZ Units/Developers) on specified services used for export of
goods covered in Notification 17/2009-ST dated 07.07.2009 (as amended)
subject to certain conditions. In this connection, Honourable Finance Minister, had stated in his Budget Speech that
“There
have been considerable difficulties in the sanction of refunds,
relating to tax paid on services used for export of goods. I propose to
shortly introduce a scheme for the refund of these taxes on the lines of
drawback of duties in a far more simplified and expeditious manner”.
2. Accordingly,
Government has proposed to introduce a simplified scheme for electronic
refund of service tax to exporters, on the lines of duty drawback. With
the introduction of this new scheme, exporters now have a choice:
either they can opt for electronic refund through ICES system, which is
based on the ‘schedule of rates’ or they can opt for refund on the basis
of documents, by approaching the Central Excise/Service Tax formations.
3. To
obtain benefit under the new electronic STR scheme, which is based on
the ‘schedule of rates’, an exporter: (i) should have a bank account and
also a central excise registration or service tax code number and the
same should be registered with Customs ICES 1.5 using ‘Annexure –A’
Form;(ii) should declare his option to avail STR on the electronic
shipping bill while presenting the same to the proper officer of
Customs.
4. In
the ‘schedule of rates’, to be notified shortly, rates are specified
for goods of a class or description. An exporter, who wishes to obtain
electronic STR, should express his option by mentioning in the shipping
bill, chapter/subheading number at the first two digits or four digit
levels specified in the schedule of rates, as applicable to the export
goods declared in the shipping bill. This chapter/sub heading number
should tally with RITC code mentioned in the Shipping Bill against the
export goods. Eligible refund amount of service tax paid on the
specified services used for export of goods declared in the shipping
bill will be calculated electronically by the ICES system, by applying
the rate specified
in the schedule against the said goods, as a percentage of the FOB
value.
5. Exporters
who do not like to obtain electronic STR on the basis of ‘schedule of
rates’, but wish to opt for claiming STR on the basis of documents,
through the Central Excise/Service Tax field formations should declare
chapter/subheading number as 9801 in the electronic Shipping Bill.
Minimum STR will be Rupees Fifty for an electronic shipping bill. An
exporter who wants to get the chapter/sub heading number amended, for
any reason, can get the same carried out through the ICES service centre
by filing an amendment request; amendment request can also be filed
through ICEGATE using Remote EDI System(RES) software. Exporters can
track the status of their refund claim and details of refund amount
through ICEGATE Document Tracking and Touch Screen Enquiry.
6. STR
amount processed under the ICES will be disbursed through the branch of
the authorized bank at each customs location. The STR amount in respect
of individual exporters will be credited directly to the bank account
of the exporter, in the authorized bank branch at a Custom location or
to any core banking enabled banking account of the exporter, in any
branch/bank anywhere in the country (through the NEFT/RTGS). For this
purpose, the exporters are required to register with Customs, the Indian
Financial Service Code (IFSC) of the bank branch in which s/he wishes
to receive the STR amount, the core banking enabled account number, bank
name and address, using ‘Annexure-A’. The procedure for registration of
bank account is the same as
existing procedure for registration of bank account for receiving
drawback amount. Form for registration of bank account, namely,
‘Annexure-A’ is enclosed to this Circular, for the convenience of the
exporters.
7. Duly
filled in ‘Annexure–A’ form enclosed in this Circular (along with
self-certified photocopy of central excise registration or service tax
code number), should be submitted to the Designated Superintendent in
the Customs Houses/Customs formations, as soon as possible, to get
benefit of the electronic refund scheme. (Merchant
Exporters, who require a service tax code, can use Form A-2 provided in
the Notification 17/2009-ST and obtain the same from jurisdictional
central excise or service tax by following the procedure prescribed in
the notification). In respect of exporters who already have their bank
accounts registered for receiving drawback amount, no new/separate
account will be
necessary for receiving service tax refund; but they should register
their central excise registration or service tax code number with
Customs ICES using Annexure-A Form, if they wish to opt for electronic
STR. An exporter availing drawback scheme cannot have separate bank accounts for drawback and service tax refund.
8. A
new head of accounts under Major Head “0044- Service Tax” has been
opened, namely 00441082 for booking of consolidated electronic refunds.
9. Chief
Commissioners/ Commissioners are requested to cause wide publicity to
the new electronic STR scheme among exporters. Necessary steps may be
taken to disseminate information regarding the salient features of the
new electronic STR scheme to the Industry and Trade Bodies/ Chambers /
Exporters / CHA Associations. In major Custom Houses,
special arrangements may be made to receive the duly filled in
‘Annexure-A’ forms from the exporters. Systems Managers may make
necessary arrangements to verify the Annexure –A forms and upload the
details in the ICES. This circular is also being posted on the CBEC
website, www.cbec.gov.in and www.icegate.gov.in for the information of all stakeholders.
10. Trade Notices/Facility Circulars may be issued by the service tax/central excise and service tax/customs commissionerates. Hindi version will follow.
Enclosed: Annexure - A Form
(J. M. Kennedy)
Director (TRU)
Tel/Fax: 011-23092634
Email: jm.kennedy@nic.in
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