Brush-Up - 1 # - Service Tax Rebate Claims -Declaration may be filed after export in case of IT-enabled services/call centres [Wipro Ltd. v. Union of India [2013] 39 STT 639/32 taxmann.com 113 (Delhi)]‏

Decision - In favour of Assessee. Rebate Claim allowed.

As regards requirement of filing declaration, it was held that in case of assessee engaged in services provided in call centre or BPO centre, every phone call is an export of taxable service, while input services are received only at regular intervals, depending upon arrangement with service-providers. It is impossible to anticipate date of export and with precision demarcate point of time prior to export. 

Further, such service-exporter cannot value and specify amount of service tax/cess payable on input services "actually required" to be used in providing exported service, which can be known only when bill or invoice for input-services is received. Hence, it is impossible for an assessee to comply with requirement of filing of declaration of input services actually required 'prior to date of export'.

 Filing of a declaration after date of export and after all requisite details were available was a sufficient compliance. Therefore, assessee was eligible for rebate even if declaration was filed after export.

Warm Regards

Gaurav Arya

Chartered Accountant