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Service tax exemption claim by sez

R S RAO (JOB) (30 Points)

10 June 2016

Hello,

Please clarify the following query :

Can the Service Tax authority refuse issue of Form -A2 if the service provider has not registered with Service Tax authority under the heading for which the service was provided to the SEZ.

Question 1- If a service provider is registered under heading 0233 - Erection and Commissioning, but has provided the service to SEZ under heading - Maintenance and repairs, can the ST department refuse to issue the Form-A2 ?

Question-2 - If the ST authority refuse to issue the Form-A2 is the service taker liable to pay the service tax along with penalty and interest as they had not disclosed under what head they where claiming the exemption?

Thanks for your help

R Shivank Rao

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4 Replies

CA Anant Tyagi (CA) (283 Points)
Replied 10 June 2016

Dear,

Service tax registration is required to provide any service under legal manner of service tax laws.

In case of service provider has not registered with Service tax authority under the heading for which service provided to SEZ, specified officer of SEZ shall not refuse to issue the form A-2. If you are providing specified listed service to SEZ, officer shall issue the form A-2. However, you may amend the ST-2.

Answer 1- SEZ officer shall not refuse for issuance of Form A2 since both of the services are listed service as per instruction issued by SEZ authority.

Answer 2- Service provider can provide service to SEZ without charging service tax on the basis of copy of form A-2. But if form A2 is not submitted to SP within 3 months, service provider will be liable to pay service tax with interest. Penalty shall be imposed on the discretion of officer.

R S RAO (JOB) (30 Points)
Replied 11 June 2016

Hello Mr.Anant,

Thanks for the reply.

Shivank

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : R SHIVANK RAO

Hello,

Please clarify the following query :

Can the Service Tax authority refuse issue of Form -A2 if the service provider has not registered with Service Tax authority under the heading for which the service was provided to the SEZ.

Question 1- If a service provider is registered under heading 0233 - Erection and Commissioning, but has provided the service to SEZ under heading - Maintenance and repairs, can the ST department refuse to issue the Form-A2 ?

Question-2 - If the ST authority refuse to issue the Form-A2 is the service taker liable to pay the service tax along with penalty and interest as they had not disclosed under what head they where claiming the exemption?

Thanks for your help

R Shivank Rao

First of all , amend your registeration in form ST2, It will updated immediately.

Secondly, apply to your commissioner in form A2 with this amended registeration copy acknowledged by department. Suo moto application would be approved.

. Regards Karanjit Singh | +91-7503588224 Read more at: /forum/krishi-kalyan-cess-pending-payments-361722.asp