Exemption to taxable services provided against duty credit scrips – MEIS and SEIS :

The taxable services provided/agreed to be provided by a person located in the taxable territory against Merchandise Exports from India Scheme (MEIS) duty credit scrips and Service Exports from India Scheme (SEIS) duty credit scrips issued to an exporter, are exempt from service tax subject to the fulfillment of the following major conditions:

(a) Conditions prescribed for claiming exemption from basic customs duty, CVD and special CVD on goods imported into India against SEIS and MEIS duty credit scrips are complied with and the said scrips have been registered with the Customs Authority.

(b) Holder of the scrip, to whom taxable services are provided or agreed to be provided is located in the taxable territory.

(c) Holder of the scrip presents the scrip to the Customs Authority along with a letter and an invoice, challan etc. issued by the service provider indicating details of his jurisdictional Central Excise Officer (hereinafter referred to as the said Officer) and the description, value of the taxable service provided or agreed to be provided and service tax leviable thereon.

(d) Customs Authority shall debit the service tax leviable, but for this exemption, in or on reverse of the scrip and send a written advice of the action taken to the said officer. The date of debit of service tax leviable, in the scrip, shall be taken as the date of payment of service tax.

(e) Holder of the scrip presents the scrip debited by the said Customs Authority within 30 days to the said Officer, along with an undertaking addressed to the said Officer, that in case of any service tax short debited in the scrip, he shall pay such service tax along with applicable interest.

(f) Based on the said written advice and undertaking the said Officer shall verify and validate on the reverse of the scrip, the details of the service tax leviable, which were debited by the said Customs Authority, and keep a record of payment of such service tax and interest, if any.

(g) Service provider retains a copy of the scrip, debited by the said Customs Authority and verified by the said Officer and duly attested by the holder of the scrip, in support of the provision of taxable services under this notification.

(h) Holder of the scrip, to whom the taxable services were provided/agreed to be provided shall be entitled to avail drawback or CENVAT credit of the service tax leviable under section 66B of the said Act, against the service tax debited in the scrip and validated by the said Officer.

[Notification Nos. 10 & 11/2015 ST dated 08.04.2015]