service tax exemption for sub contractor in sez

You should bill the SEZ directly now for the benefit top be provided as there is no instruction/ provision which allows the sub contractor toget the benefit.

In the meantime there is no exemption for you.

Representation in this reagrd could be made by the SEZ.

In that billing... One should mention the name of the Sub COntractor as this service was originally provided to the Sub Contractors ??

thank you

Services provided within SEZ unit or developer for consumption within SEZ are exempt [Notification No. 4/2004-ST dated 31-3-2004 in respect of SEZ]. The wording of notification is such that services consumed within the zone are alone exempt. Thus services provided outside SEZ (e.g. customs clearance, transport etc.) are not exempt. Taxable services provided to a developer or a unit in SEZ are exempt from service tax (section 26(1)(e) of SEZ Act. [Rule 31 to SEZ Rules]

Dear Experts.

we are the subcontractors , we have done waterproofing work for SEZ unit ,under the main Contarctor. Main Contractor has mentioned as " As our client So and so is exempted from Service tax aginst Notification no" in our work order.

As a subcontractor i have also not charged to the maincontractor. Now We have been told to pay the service tax. Kindly advice.

with regards

murali

Only services provided to sez unit or sez developer is exempted. Service prvided to sub-contractor may be taxable.