100% EOU

This query is : Resolved

Madhu (Querist)
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12 May 2008 Dear all,

We are an 100%EOU in Research & Development,

shall we need to apply registration under service tax act ? if so, under what service we need to apply ?

please clarify my query

Regards,
Madhu

madhukintali@yahoo.com

Amit Sharma

Amit Sharma (Expert)
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12 May 2008 Dear Madhu,

Service Tax applicable to 100% EOUs. As per Chapter 6.11 (v) the Service Tax is not applicable to 100% EOU’s.

As far as clarification on Service Tax matters is concerned, the unit may approach service tax commissionerate. Further, para 5 of Board’s Circular No. 54/04 dt, 13.10.04 read with Cenvat Credit Rules, 2004 permits EOUs to take credit of Service Tax borne by them (as buyers) and to utilize the same for payment of duty of sales.

Hope your doubt is clear now.

R.V.RAO

R.V.RAO (Expert)
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12 May 2008 Remission of Servicetax: For all goods and services which are exported from units in Tax in DTADomestic Tariff Area (DTA) and units in EOU/EHTP/STP/BTP remission of service tax levied shall be allowed.
Exemption from from serv.tax:Units in SEZ shall be exempted from service tax.
source:exim policy document-

THERE IS A SUBTLE DIFFERENCE BETWEEN exemption and a remission. An exemption means there is no charge. A remission means there is a charge but the UNIT is entitled to help paying it.
R.V.RAO

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