Service Tax Refunds Available for IT, Outsourcing Companies
Feb. 2 – IT and outsourcing companies will be issued pending service tax refunds within 30 days starting January 19 according to a circular released by the Central Board of Excise and Customs (CBEC).
The circular clarifies the disputed definition of services used labeled “inputs” by technology and business process outsourcing companies and will help companies already struggling with slower growth last year.
Companies who have paid service tax paid on inputs, such as transportation of staff, telecom facilities, software maintenance and upgrades, provision of food to employees working in 24 hour environment, hiring recruitment agencies and other related services, would be eligible for refund.
The CBEC will also allow service exporters to do self-certification of bills to cut pending claims filed with authorities.
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