Service provided to SEZ as a sub-contractor

Gautam Joshi (Partner) (361 Points)

17 January 2010  

Hi all,

We have a notification of Services provided to SEZ saying exempt clearly. My question is no where in the notification a clarification is provided that this service should have been provided as a contractor or even exemption can be given even if to a sub-contractor when he is not a final service provider but only provides a part of service to complete the service.

To support this kind of practice, some companies established in SEZ even give certificate that they are the final consumer and established legaly as per SEZ Act and rules substantiating claim of exemption raised by service provider.

Possible argument from the government can be that a sub-contractor is providing services to a contractor and not to SEZ which is a final consumer of service and so a service provided to a contractor not a developer or authorised person of SEZ and so exemption should be denied.

Kindly give your valuable comments.

Warm Regards.