applicability of service tax

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This query is : Resolved

CA Pramit Mishra (Querist)

10 February 2009 My company is in SEZ Noida and we also have units in Haridwar, Dehradun and Noida DTA. All the units except Noida DTA are exempt from Service Tax liability. We are getting a common bill for services provided for all these units. Should service provider charge the service tax on the portion of services provided to non-exempt unit???

K V Subba Rao

K V Subba Rao (Expert)

10 February 2009 Any service provided by a unit which is outside SEZ to a unit within SEZ and services provided between units within SEZ will be exempt from tax. The exemption will also apply to services rendered by a unit in a particular SEZ to a unit in another SEZ (Source: https://www.thehindubusinessline.com/2002/11/25/stories/2002112501830100.htm)

Before finding an apporpriate answer to your Query for academic interest, may I know what prevents you from getting seperate bills and issuing seperate Cheques

CA Pramit Mishra

CA Pramit Mishra (Querist)

10 February 2009 Actually we have specified agreement with our Service provider that bills shall be raised only in the name of SEZ unit. Hence the billing amount is not divisible.

K V Subba Rao

K V Subba Rao (Expert)

15 February 2009 Notwithstanding Agreement provisions, it should be possible to discuss with Service Provider and get seperate bills unless Service Provider is a Govt Agency or PSU

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