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
Annexure
A
PART-
A
BANK
ACCOUNT REGISTRATION FOR E-STR
I.E.C. Number : ………………………………………………..
IFS Code : ………………………………………………..
Bank Account Number :
………………………………………………..
Bank Name & Address : …………………………………………………
-----------------------------------------
…………………………………………………
Certificate
from the bank
Certified that the above particulars are
correct.
Signature
(Bank Branch Manager
along with official seal)
PART-B
Central
Excise Registration/Service Tax Code Number
In case,
Service Tax Refund (STR) is to be claimed electronically through ICES 1.5, on
the basis of ‘schedule of rates’, please provide following details:
Central Excise Registration
Number:......................................................................
OR
Service Tax Code Number:.................................................................
Declaration
I declare that the above particulars mentioned in Part A
and B are correct.
Signature
Exporter/ Authorized
Representative