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Delhi HC to government: Refund Vodafone Idea tax paid towards export of international roaming, long-distance services
Delhi High Court has asked the government to give refund to the telecom company vodafone idea Integrated tax of Rs 7.12 crore. Vodafone-dea had paid tax on export of international roaming and long distance services. These services, provided foreign telecom operator to their customers during their visit to India, qualified as export of services, the HC held.
What did Vodafone claim?
Delhi HC had issued a notice earlier this year Finance Ministry and others on Vodafone Idea’s plea seeking refund of integrated tax paid to foreign telecom operators on international roaming and long distance services provided to their customers during their visits to India.
The company had claimed that its telecommunication services, including International Inbound Roaming Services ,iir) And International long distance services (ILDs) which are provided to Foreign Telecom Operators (FTO) customers during their visit to India, are in the nature of export of services within the meaning of the Integrated Goods and Services Tax Act, and such exports are zero-rated supplies under the law. Is. ,
What did Delhi HC say?
a bench consisting of justices Vibhu Bakru And Amit Mahajan said that it is clear that the provisions for ascertaining the place of supply of services under Rule 6A of the ST Rules are similar to Section 2(6) of the IGST Act as the services will be treated as export of services. The service provider is located in the taxable territory, the service recipient is located outside India, and the place of provision of service is outside India.
What did Vodafone claim?
Delhi HC had issued a notice earlier this year Finance Ministry and others on Vodafone Idea’s plea seeking refund of integrated tax paid to foreign telecom operators on international roaming and long distance services provided to their customers during their visits to India.
The company had claimed that its telecommunication services, including International Inbound Roaming Services ,iir) And International long distance services (ILDs) which are provided to Foreign Telecom Operators (FTO) customers during their visit to India, are in the nature of export of services within the meaning of the Integrated Goods and Services Tax Act, and such exports are zero-rated supplies under the law. Is. ,
What did Delhi HC say?
a bench consisting of justices Vibhu Bakru And Amit Mahajan said that it is clear that the provisions for ascertaining the place of supply of services under Rule 6A of the ST Rules are similar to Section 2(6) of the IGST Act as the services will be treated as export of services. The service provider is located in the taxable territory, the service recipient is located outside India, and the place of provision of service is outside India.
HC said it is not disputed that Customs Excise and Service Tax Appellate Tribunal (CESTAT) has accepted the appeal made by the petitioner in several cases after the above decision and has directed to refund the money.
“The petitioner’s predecessor (Vodafone India Limited) had argued before the Customs Excise and Service Tax Appellate Tribunal on the question whether the services in question qualify as export services,” the judgment said.
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