is there any provision for absolute exemption from service tax on services provided and consumed with in SEZ.
nirmal samdani (manager accounts) (25 Points)
03 November 2011is there any provision for absolute exemption from service tax on services provided and consumed with in SEZ.
GOPAL AGGARWAL
(DOING NOTHING)
(1339 Points)
Replied 03 November 2011
In my views services which are expressely defined for SEZ where they were consumed / provided are exmept
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 03 November 2011
SERVICES PROVIDED BY DTA TO SEZ UNIT OR SEZ DEVELOPER ,SERVICE TAX IS PAYABLE w.e.f 3.3.2009 , IRRESPECTIVE WHETHER THEY ARE CONSUMED WHOLLY WITHIN SEZ OR NOT,however SEZ UNIT CAN GET REFUND OF SERVICE TAX PAID BY THEM AS PROCEDURE PRESCRIBED UNDER NOTFICATION NO .9//2009
HOWEVER SERVICES PROVIED BY SEZ TO DTA ,SERVICE TAX MUST BE PAYABLE
REGARDS
SRIPAL JAIN
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 03 November 2011
SERVICES PROVIDED BY DTA TO SEZ UNIT OR SEZ DEVELOPER ,SERVICE TAX IS PAYABLE w.e.f 3.3.2009 , IRRESPECTIVE WHETHER THEY ARE CONSUMED WHOLLY WITHIN SEZ OR NOT,however SEZ UNIT CAN GET REFUND OF SERVICE TAX PAID BY THEM AS PROCEDURE PRESCRIBED UNDER NOTFICATION NO .9//2009
HOWEVER SERVICES PROVIED BY SEZ TO DTA ,SERVICE TAX MUST BE PAYABLE
REGARDS
SRIPAL JAIN
HARSHAD
(Service)
(28 Points)
Replied 11 November 2011
Hi there, Kindly let me know if for a individual book seller (who does purchase books from the distributors and agents i.e. sub distributors) who runs a shop, is he liable to charge service tax. If not which willl be the applicable tax he should levy on the purchaser.
Regards,
Harshad
Sastry
(Group B)
(45 Points)
Replied 11 November 2011
@ HARSHAD
Sales is not a notified taxable service under Section 65 of the Finance Act, 1994. Such activity does not attract any indirect tax unless you have some sort of an agency relationship where you provide the sale as a service to another person. Even in such a case, the purchaser is not liable to pay service tax. And you have to pay the Service Tax propbably under BAS (business Auxilliary Service) and this liability should be taken care of when you quote for providing such services. Otherwise, if it is a direct purchase and resale, then you will be liable for income tax (direct tax).
Hari Wadhwa
(CA in Practice)
(485 Points)
Replied 13 November 2011
Dear Harshad
Sale of Books is NOT Taxable under Service Tax law. Further, VAT (Tax on sale of goods) on "Books" is exempt under Schedule 1 (DVAT).Thus, No sales tax (VAT) as well.
There remains no other tax which can be levied on sale of this transaction.Thanx.