Services exporters to get quick refunds of indirect taxes
Services exporters will now be able to get refunds of indirect taxes paid on inputs within five days without any prolonged scrutiny, according to a new scheme announced by the government. The move is aimed at liquidating locked funds amounting to thousands of crores of rupees in the form of CENVAT (central value added tax) paid by companies engaged in trade of goods and services outside India and get refunds later. “This year having been declared as the Year of Taxpayer Services, the Board has accorded primacy to ‘speedy sanction of refunds in case of export of services’,” said the Central Board of Direct Taxes (CBDT). Keeping in mind various legal changes in service tax and representations received in this regard, the Board said, “The scheme has been drawn up to fast track sanction of refund of accumulated Central Value Added Tax (CENVAT) credit to exporters of services.” At present, exporters accumulate CENVAT credit on both input goods and services as they are unable to offset their tax liabilities on inputs. As per the new scheme, a provisional payment of 80% of the claimed amount will be made within five working days after submission of a certificate from the statutory auditor/chartered accountant as well as the claimant. The decision to grant provisional payment is an administrative order and should not be subjected to review, the Board said.
November 12, 2015 | 2:45pm IST
to success.