Benefit of Duty credit Scrips under FTP 2009-14 notified under the Service Tax

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Benefit of Duty credit Scrips under FTP 2009-14 notified under the Service Tax

The Annual supplement to the Foreign Trade Policy 2009-14 announced by the Minister of Commerce, Industry & Textiles on April 18, 2013 has widened the scope of utilization of duty credit scrip. Now duty credit scrips issued under Focus Market Scheme, Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana (“VKGUY”) can be used for payment of service tax on procurement of services under the Finance Act. Also holder of the scrip shall be entitled to avail drawback or CENVAT credit of the service tax debited in the Scrips as per prevailing laws.

In view of above, the Central Government has issued following Notifications under the Finance Act:

1. Notification No. 6/2013-ST dated April 18, 2013 – exempts the taxable services provided or agreed to be provided against a Focus Market Scheme duty credit scrip by a person located in the taxable territory from the whole of the service tax leviable thereon under Section 66B of the Finance Act subject to fulfilment of certain specified conditions.

The above notification can be viewed at:

http://www.a2ztaxcorp.com/wp-content/uploads/2013/04/NOTIFICATION-NO-6.pdf

2. Notification No. 7/2013-ST dated April 18, 2013 – exempts the taxable services provided or agreed to be provided against a Focus Product Scheme duty credit scrip by a person located in the taxable territory from the whole of the service tax leviable thereon under section 66B of the Finance Act subject to fulfilment of certain specified conditions.

The above notification can be viewed at:

http://www.a2ztaxcorp.com/wp-content/uploads/2013/04/NOTIFICATION-NO-7.pdf

3. Notification No. 8/2013-ST dated April 18, 2013 – exempts the taxable services provided or agreed to be provided against a VKGUY duty credit scrip by a person located in the taxable territory, from the whole of the service tax leviable thereon under section 66B of the Finance Act subject to fulfilment of certain specified conditions.

The above notification can be viewed at:

http://www.a2ztaxcorp.com/wp-content/uploads/2013/04/NOTIFICATION-NO-8.pdf

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