REBATE AND BRC., Service Tax

[DIPAK K]

DEAR EXPERTS, GOOD MORNING. Sir, whether BRC or realisation of export proceeds is mandatory before sanction of rebate claim. If so, please provide relevant circular/notification no. Thanks and regards sir.

Posts / Replies

[Pradeep Khatri]

circular no. 5 /2009-customs

[DIPAK K]

Thank you sir. But this is rebate of service tax under notification no. 41/2012-ST. I have read somewhere that BRC is mandatory for rebate under notification no. 41/2012-ST but couldn't locate any circular/instructions to this effect.

[Naveed S]

Circular No. 354/70/1997 CX dated 13.11.1997 issued vide F.No. 209/54/97 - CX - 6.

[Kadayam Ganapathy Subramanian]

If this is a case of rebate of service tax paid on specified services under Notification No.41/2012-ST dated 29.06.2012, then refer paragraph No.4 of the said notification which is detailed below:

" where any rebate of service tax paid on the specified services has been allowed to an exporter on export of goods but the sale proceeds in respect of said goods are not received by or on behalf of the exporter, in India, within the period allowed by the Reserve Bank of India under Section 8 of the Foreign Exchange Management Act,1999 (42 of 1999), including any extension of such period, such rebate shall be deemed never to have been allowed and may be recovered under the provisions of the said Act and the rules made thereunder;"

From the perusal of above paragraph, it is clear that realization of export proceeds of goods is mandatory and if not received within the stipulated period allowed by RBI, then the rebate under the above notification should not have been allowed and the same is liable to be recovered.

Regards,

K.G Subramanian