Sunday, March 23, 2014

notification for refund of Cenvat for service provider under reverse charge mechanism for few service provider

notification for refund of Cenvat for service provider under reverse charge mechanism 

Notification No.12/2014 –Central Excise (N.T.)G.S.R. (E) dated the 3rd March,2014.–

In exercise of the powers conferred by rule 5B of the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), the Central Board of Excise and Customs hereby directs that the refund of CENVAT credit shall be allowed to a provider of services notified under sub-section (2) of section 68 of the Finance Act,1994, subject to the procedures, safeguards, conditions and limitations, as specified below, namely:-

1.      Safeguards, conditions and limitations.–
(a)   the refund shall be claimed of unutilised CENVAT credit taken on inputs and input services during the half year for which refund is claimed, for providing following output services namely:-
(i)           renting of a motor vehicle designed to carry passengers on non abated value,to any person who is not engaged in a similar business;
(ii)        supply of manpower for any purpose or security services; or
(iii)      service portion in the execution of a works contract;
(hereinafter the above mentioned services will be termed as partial reverse charge services).
Explanation:-For the purpose of this notification,-
Unutilised CENVAT credit taken on inputs and input services during the half year for providing partial reverse charge services = (A)–(B)

(A) = Cenvat credit taken on inputs and input services during the half year * turnover of output service under partial reverse charge during the half year / total turnover of goods and services during the half year
(B) = service tax paid by the service provider for such partial reverse charge services during the half year;

(b)   the refund of unutilized Cenvat credit shall not exceed an amount of service tax liability paid or payable by the recipient of service with respect to the partial reverse charge services provided during the period of half year  for which refund is claimed;
(c)    the amount claimed as refund shall be debited by the claimant from his Cenvat credit account at time of making the claim;
(d)  in case the amount of refund sanctioned is less than the amount of refund claimed, then the claimant may take back the credit of the difference between the amount claimed and the amount sanctioned;
(e)   the claimant shall submit not more than one claim of refund under this notification for every half year;
(f)     the refund claim shall be filed after filing of service tax return as prescribed under rule 7 of the Service Tax Rules for the period for which refund is claimed;
(g)   no refund shall be admissible for the CENVAT credit taken on input or input services received prior to the 1stday of July,2012;
For the            purposes of this notification, half year means a period of six consecutive months with the first half year beginning from the 1st day of April every year and second half year from the 1st day of October of every year.

2.      Procedure for filing the refund claim.–
(a)   the provider of output service, shall submit an application in Form A annexed hereto, along with the documents and enclosures specified therein, to the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, before the expiry of one year from the due date of filing of return for the half year:
Provided that the last date of filing of application in Form A, for the period starting from the 1st day of July,2012 to the 30th day of September,2012, shall be the 30th day of June,2014;
(b)   if more than one return is required to be filed for the half year, then the time limit of one year shall be calculated from the due date of filing of the return for the later period;
(c)    the applicant shall file the refund claim along with copies of the return(s) filed for the half year for which the refund is claimed;
(d)  the Assistant Commissioner or Deputy Commissioner to whom the application for refund is made may call for any document in case he has reason to believe that information provided in the refund claim is incorrect or insufficient and further enquiry needs to be caused before the sanction of refund claim ;
(e) at the time of sanctioning the refund claim, the Assistant Commissioner or Deputy Commissioner shall satisfy himself or herself in respect of the correctness of the refund claim and that the refund claim is complete in every respect

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