Csez excemption for service tax

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sini binu

working

61 Points Posted on 21 October 2011

Sir, we are a pvt limited company providing supply and erection of Sewage Treatment plant for Development commmissioner CSEZ.Usually we are providing operation of the plant of the plant without charging service tax and showing as exempted service.But as per new notification whether it is chargable service or not .From our information from S T dept,we should raise the service bill as any other party and Development commmissioner of CSEZ can claim refund.iF IT SO ,wHat is the befit for an CSEZ unit,as they are providing payment including service tax to us and after that he can claim refund from govt.Im in utter confusion,pls advise sir. Regards sini

Replies (2)

CA Unnikrishnan Nair N

Chartered Accountant

2083 Points Posted on 21 October 2011

If the service is wholly performed within the SEZ, then it can treated as wholly consumed in SEZ since the subject service is classfiable as Erection, commisioning. Hence exemption is available as per Noti.17/2011-ST. But prior approval of DC is a condition. Also follow prescribed procedures.

CA Nitin Karmalkar

Senior Associate

70 Points Posted on 21 October 2011

Dear Sini,

There is benefit is only that they got refund service tax. In ordinary case if you have export then only you will get refund under Rule 5 of CCR 2004. SEZ do not require to prrrove such export. Raising invoice & granting refund is procedure for control purpose.