Swachh Bharat Cess Component allowed as Rebate/Refund + services used beyond factory for export also refundable
ON 2nd February, the Central Government came out with a bunch of notifications(released only yesterday) and which have the following effect -
Sr no. | Service Tax Notification no. | Effect |
|---|---|---|
1. | 01/2016-ST dt. 02-02-2016 | Notification No. 41/2012-ST, dated the 29th June, 2012 amended so as to allow refund of service tax on services used beyond the factory or any other place or premises of production or manufacture of the said goods for the export of the said goods and to increase the refund amount commensurate to the increased service tax rate. |
2. | 02/2016-ST dt. 02-02-2016 | Notification No. 12/2013-ST, dated the 1st July, 2013 amended so as to allow refund of Swachh Bharat Cess paid on specified services used in an SEZ. |
3. | 03/2016-ST dt. 02-02-2016 | Notification No. 39/2012-ST, dated the 20th June, 2012 amended so as to provide for rebate of Swachh Bharat Cess paid on all services, used in providing services exported in terms of rule 6A of the Service Tax Rules. |
As the adage goes, better late than never!
But what about the accumulated credit of Education Cess lying in the CENVAT account of the assessees?
Notwithstanding the Tariff Conference and Para B-21 of CBEC Instruction in F.No.96/85/2015-CX.I., Dated: December 07, 2015 it would have been welcome if the Board had come out with an amendment in the CCR, 2004 to allow payment of Central Excise duty / Service Tax by utilising the Education cess lying in balance.