Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Service Tax on STPI Units

Save Share

This query is : Resolved

Tamilendran A (Querist)

21 December 2007 We are a STPI UNit and not registered with service tax, as it not applicable. Can we get excemption of paying service tax to all our services received like, internet, mobile, telephone etc.

1. We are not charging service tax to our customers as it is export business only.
2. We do charge service tax, as it is domestic sales.

Kindly clarify.

Tamizh

Dayal

Dayal (Expert)

19 February 2008 For STP Units which do not have domestic billings and who consequently cannot avail of input credit in terms of the service tax paid by them on any input service including rentals, such service tax paid by them can actually be claimed as a refund from the Government under Section 11B of the Central Excise Act, 1944

Further, there is not provision of exemption on input services, which means pay first and clalim refund of srevice tax so paid on input services.

If you have DTA services then you can set off the input service tax credit on such sales

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now