The third party sources (Income Tax department) have provided the data about gross

receipts of some parties including M/s Kinerk Direct Marketing Solutions Pvt. Ltd., C
134, Phase VIII, Industrial Focal Point, S. A. S. Nagar, Mohali in which the said party has
shown to have received an amount of Rs. 6,05,12,233/- during the Financial year 2012
13 but has shown to have deposited NIL service tax.
Acting on the above information, the some information / data / documents viz. Bank
statements, Balance Sheets, Income Tax returns and Form 26 AS (TDS) for the period
2012 13 were called from the party which the party submitted vide their letters dated
02.11.2015. The party vide their ST 3 returns also availed exemption on account of
providing Information Technology services to overseas customers. To verify the facts,
certain additional documents viz. Invoices issued, FIRCs and Softex Forms were called for.
The party submitted copies of invoices, FIRCs and Softex forms vide their letter dated
01.12.2015.
Analysis and Observations:
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Third Party Source: The source document has shown that the gross receipts of the
party is Rs. 6,05,12,233/- during the financial year 2012 13.
Form 26 AS (TDS): Examining the Form 26 AS, it is noticed that the gross receipts
of the party during the financial year 2012 13 is Rs. 17,460/-.
Balance Sheets: Examining the balance sheets, it is noticed that the gross receipts of
the party during the financial year 2012 13 is Rs. 6,05,12,233/- on account of sale of
services.
Bank Statements: Examining the bank statements of Axis Bank, Account No. 9120 200
4140 1088, submitted by the party it is noticed that the gross receipts of the party
during the financial year 2012 13 is Rs. 6,07,42,336/-.

It is observed that the party has exported services in terms of Rule 6A of Service Tax
Rules, 1994 (as amended) and have received an amount of Rs. 6,05,12,233/- from the
non-taxable territory on account of export of services. The same is also revealed by the
copies of invoices issued, softex froms & FIRCs submitted by the party. In support of the
differences in Bank Account and Balance sheets, the party submitted Bank Ledger
account which shows the total credits of Rs. 6,12,28,983/- during the financial year 2012
13. Scrutiny of the Bank Ledger reveals that party has received a total amount Rs.
6,12,28,983/-. The differential amount pertains to the refund amount of input services
received from the department on account of export of services, which is not liable to
service tax. The export of services has been exempted from the purview of Service Tax in
terms of the provision of Notification 41/2012 C. E. / N. T.
Conclusions:
In view of the above mentioned facts, it appears that the party has exported services in
terms of Rule 6A of Service Tax Rules, 1994 (as amended) which is exempted from the
purview of Service Tax in terms of the provision of Notification 41/2012 C. E. / N. T. Also,
threshold exemption of rupees ten lakh as application vide the provisions of Finance Act,
1994 read with Notification No. 33/2012 dated 20.06.2012 was available for the party
and the party has availed the same. Thus the service tax on the amount shown to have
received in the data received from the third party source (Income Tax department) does
not appear to be leviable.
Hence, no service tax liability is detected.