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Service Tax Refund in India

Service Tax Refund[edit]

The government has given Service Tax Refund for the following goods:

• General insurance services, • Inspection and certification agency services, • Technical testing and analysis agency services.

Procedure to claim the Service Tax Refund is as follows:

• The person has rights to pay service tax under sub-section (1) or sub-section (2) of section 68 which comes under Finance Act is eligible to pay the service tax on the specified services.

• The exporter can claim the Service Tax Refund only by filing the refund of service tax in government that is paid on the specified services. The only thing needed is the manufacturer-exporter of the said goods shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise.

• The people can claim for Service Tax Refund only with the following documents like: export of the said goods; payment of service tax on the specified services for which they have claimed; the copy of written agreement entered into by the exporter with the buyer of the said goods.

• The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise will provide the Service Tax Refund only for the specified services.

The government should announce that the refund of service tax should suit all the eligible services with the date of inclusion, from the date on which the said facility was notified in the Foreign Trade Policy. Refund is admissible only on the basis of gross amount received for the exports and deductions made by the banks from export remittances.

While claiming for Service Tax Refund the exporters need to produce certified copies of various documents rather than the original versions. The claim for refund shall be filed only on the quarterly basis and also it need to be filed within sixty days from the end of the relevant quarter during which the said goods have been exported.

Procedure for Refund of Service Tax[edit]

Procedure for Refund of Service Tax

a. Application in Form No ‘R’ is to be filled in triplicate with the jurisdictional Asst/Deputy Commissioner of Cental Excise/Service Tax. b. The application should be filled within one year from the relevant date. c. Application should be accompanied by documentary evidences relating to the service Tax in excess and other relevant documents.

Adjustment of Excess Service Tax

If any taxable provider has paid excess Service Tax he may adjust the excess paid against his Service Tax liability for the subsequent period.


Private bus operators providing point transportation of passengers having contract carriage permit have been exempled from .Tour Operator Service

Scheduled banjs are exempted from Service Tax on inter-bank transactions of sale and purchased of foreign currencies.

Rectifications/Correction of Mistake

Any order which is mistake apparently from records can be rectified by The Assistant Commissioner of Central Excise, who passed the order under the provisions of the Service Tax Act,has power to rectify or amend the order with a view to rectify any mistake.

Time Limit

The rectification of mistake apparent from the record can be done within two years from the date when the order was passed.


The Assistant Commisioner has to give notice to the assessee, in case there is increased Service Tax Liability or reduction in refund.

RATES OF SERVICE TAX FROM THE INCEPTION:- The rates of Service Tax have been changed from the time to time by suitable amendment made by Finance Act,

SI.NO Period Rate of Service Tax Rate of Education cess Rate of Higher Education and Secondary Education cess Effect Rate of Service Tax 1 01-07-1994 to 13-05-2003 5% No such Levy No such Levy 5% 2 14-05-2003 to 09-09-2004 8% No such Levy No such Levy 8% 3 10-09-2004 to 17-04-2006 10% 2% No such Levy 10.20% 4 18-04-2006 to 10-05-2007 12% 2% No such Levy 12.24% 5 11-05-2007 to 23-02-2009 12% 2% 1% 12.36% 6 24-02-2009 onwards 10% 2% 1% 10.30%

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