Service tax applicablity

As per my knowledge Services provided to a SEZ Unit is exempt from Service Tax u/s 65(105) of the  Finance Act, 1994 provided that the services rendered to the SEZ Unit are wholly consumed within the SEZ. Hence, there is no need for the Service Provider to charge Service Tax in the Invoice raised on the services rendered to a SEZ Unit .

(Refer notification for details)

{Notification No. 09/2009ST dated 03.03.2009 (Prior to 03.03.2009 Notfn.No4/2004-ST dated 31.03.2004)}

Regards,

Devendra Kulkarni

Have you received any notice from the Service Tax Department ordering you to pay the Service Tax Liability?

Yes we are receipt of a SCN, based on audit done by them about a year back.

You can reply to the Show cause Notice by giving reference of the above mentioned notification and request the Adjudicating Officer to cancel the raised demand.

Regards,

Devendra Kulkarni