Exemption notification-sez
This query is : Resolved
16 November 2011
We are a a subcontractor doing thermal power project.Now one of our ongoing site is in special economic zone and the main contractor billing without any service tax.
As per the info got from them, service tax is exempted because of work done in special economic zone..
My query is..
1. Is it applicable to sub contractor?
2..if yes, what are the documents kept by us as proof of exemption?
3.is we have to take the registration in our site in sez ?
As per the info got from them, service tax is exempted because of work done in special economic zone..
My query is..
1. Is it applicable to sub contractor?
2..if yes, what are the documents kept by us as proof of exemption?
3.is we have to take the registration in our site in sez ?
16 November 2011
REFER TO CIRCULAR NO 96/7/2007-ST, dated 23rd August, 2007
The Works Contract service (WCS) in respect of construction of Dams, Tunnels, Road, Bridges etc. is exempt from service tax. WCS providers engage sub-contractors who provide services such as Architect’s Service, Consulting Engineer’s Service, Construction of Complex Service, Design Services, Erection Commissioning or Installation Service, Management, Maintenance or Repair Service etc. The representation by Jaiprakash Associates Limited seeks to extend the benefit of such exemption to the sub contractors providing various services to the WCS provider by arguing that the service provided by the sub contractors are ‘in relation to’ the exempted works contract service and hence they deserve classification under WCS itself.
FOR MORE INFORMATION LINK IS:
http://www.servicetax.gov.in/circular/st-circular11/st-circ-138-2k11.htm
http://servicetaxnitesh.blogspot.com/
The Works Contract service (WCS) in respect of construction of Dams, Tunnels, Road, Bridges etc. is exempt from service tax. WCS providers engage sub-contractors who provide services such as Architect’s Service, Consulting Engineer’s Service, Construction of Complex Service, Design Services, Erection Commissioning or Installation Service, Management, Maintenance or Repair Service etc. The representation by Jaiprakash Associates Limited seeks to extend the benefit of such exemption to the sub contractors providing various services to the WCS provider by arguing that the service provided by the sub contractors are ‘in relation to’ the exempted works contract service and hence they deserve classification under WCS itself.
FOR MORE INFORMATION LINK IS:
http://www.servicetax.gov.in/circular/st-circular11/st-circ-138-2k11.htm
http://servicetaxnitesh.blogspot.com/
16 November 2011
I think you misunderstood the query..That is a different one.
Pleas clarify.that circular really saying about this exemption..
this is in reg with special economic zone
Pleas clarify.that circular really saying about this exemption..
this is in reg with special economic zone
21 July 2024
In the context of your subcontracting work for a thermal power project within a Special Economic Zone (SEZ), here are the clarifications to your queries:
1. **Applicability to Subcontractor**: Yes, the exemption from service tax can also apply to subcontractors if they are providing services within a Special Economic Zone (SEZ). Services provided within an SEZ are generally exempt from service tax as per specific notifications and rules under the Service Tax regime.
2. **Documents as Proof of Exemption**: To claim the exemption from service tax, you would typically need to maintain and provide the following documents as proof:
- **Copy of Work Order or Contract**: This should clearly indicate that the work is being carried out within an SEZ and is covered under the exemption.
- **SEZ Approval Documents**: Any document from the SEZ authorities or the main contractor indicating that the work is being performed within the SEZ and qualifies for exemption.
- **Invoice or Bill**: Clearly mention on your invoice or bill that the services are provided within an SEZ and are exempt from service tax under the relevant notification.
3. **Registration Requirement**:
- For service providers operating within an SEZ, registration under service tax was generally not required if they were providing services exclusively within the SEZ and benefiting from the exemption.
- However, it's crucial to check whether GST registration is required under the current GST regime for service providers in SEZs. GST laws have specific provisions for services provided within SEZs, and registration requirements may differ from the earlier Service Tax regime.
**Additional Points to Consider**:
- **GST Impact**: Since the implementation of GST, service tax has been subsumed into GST. It's essential to check the latest GST rules and notifications regarding the exemption of services provided within SEZs.
- **Compliance**: Ensure all documentation and invoicing complies with GST rules. If GST registration is required for services within SEZs, follow the registration process and maintain proper records.
To get specific guidance tailored to your situation, it's advisable to consult with a GST practitioner or tax advisor who can provide detailed advice based on the latest legal provisions and notifications applicable to services within SEZs under GST.
1. **Applicability to Subcontractor**: Yes, the exemption from service tax can also apply to subcontractors if they are providing services within a Special Economic Zone (SEZ). Services provided within an SEZ are generally exempt from service tax as per specific notifications and rules under the Service Tax regime.
2. **Documents as Proof of Exemption**: To claim the exemption from service tax, you would typically need to maintain and provide the following documents as proof:
- **Copy of Work Order or Contract**: This should clearly indicate that the work is being carried out within an SEZ and is covered under the exemption.
- **SEZ Approval Documents**: Any document from the SEZ authorities or the main contractor indicating that the work is being performed within the SEZ and qualifies for exemption.
- **Invoice or Bill**: Clearly mention on your invoice or bill that the services are provided within an SEZ and are exempt from service tax under the relevant notification.
3. **Registration Requirement**:
- For service providers operating within an SEZ, registration under service tax was generally not required if they were providing services exclusively within the SEZ and benefiting from the exemption.
- However, it's crucial to check whether GST registration is required under the current GST regime for service providers in SEZs. GST laws have specific provisions for services provided within SEZs, and registration requirements may differ from the earlier Service Tax regime.
**Additional Points to Consider**:
- **GST Impact**: Since the implementation of GST, service tax has been subsumed into GST. It's essential to check the latest GST rules and notifications regarding the exemption of services provided within SEZs.
- **Compliance**: Ensure all documentation and invoicing complies with GST rules. If GST registration is required for services within SEZs, follow the registration process and maintain proper records.
To get specific guidance tailored to your situation, it's advisable to consult with a GST practitioner or tax advisor who can provide detailed advice based on the latest legal provisions and notifications applicable to services within SEZs under GST.
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