Service tax input - sez

We cannot claim the service tax input for the sez order usually we keep track of record for sez order Bills while filing the st-3 returns it receipts from sez units shown separetely.if it will be become problem for your organisation in future.service tax authorities will give notice if uclaim the input means for sez order

insez zone whether u bill get entry onsez zone segister and the bill will be getting sez seal.from this wecannot claim servicetax input.wecan maintainseparate filefor sez order with supporting documentslike bill realtedtosez order with bills with sez seal bill delivery challans, grn etc.

for sez stpc mepz  industrial backward area we cannot claim cenvat credit for st,we can get former1, forme2,fro m concern exemptiondeveloper -notificationcopy,with ust number noand placeofbuiness ushould keep ready eith st-3 returns otherwise st dept willlaskto pay tax on sez so wewant get the supporting documents readytoavoid futurenotices.

Dear Shivkumar,

 

Your query has two issues

1) You have not charged service tax to your client who is operating in SEZ

2) You have input service tax credit against services provided to your above mentioned client.

 

To clerify you

1) You need to obtained "Form 2" from your client and on the basis of that you are not require to charged service tax to him for the services you billed. Form 2 is issued by service tax department to the unit operating in SEZ. Form 2 will have a mentioning of your company Name and services against which you need not charge service tax.

 

2) You can take the Input service tax credit paid on Input services. Rule 6(3) of CENVAT credit rule prescribed the reversal of Input tax/duty incase of service provider provide taxable as we as Exempted services. However your service to a unit in SEZ shall not be considered as exempted hence the said rule shall not applicable to your case.

 

Hope above will clear your doubt.

 

Regards

Dharmesh

8898507555

Dear Shivkumar,

 

Your query has two issues

1) You have not charged service tax to your client who is operating in SEZ

2) You have input service tax credit against services provided to your above mentioned client.

 

To clerify you

1) You need to obtained "Form 2" from your client and on the basis of that you are not require to charged service tax to him for the services you billed. Form 2 is issued by service tax department to the unit operating in SEZ. Form 2 will have a mentioning of your company Name and services against which you need not charge service tax.

 

2) You can take the Input service tax credit paid on Input services. Rule 6(3) of CENVAT credit rule prescribed the reversal of Input tax/duty incase of service provider provide taxable as we as Exempted services. However your service to a unit in SEZ shall not be considered as exempted hence the said rule shall not applicable to your case.

 

Hope above will clear your doubt.

 

Regards

Dharmesh

8898507555

Thank you Mr. Dharmesh. i want more clarity about point no 2. Plsss

Dear Mr.Dharmesh,

We have been paying 5.15% Service tax (5% + Cess 3%) on the excempted revenue (like service rendereed to SEZ units) from our pocket. Subsequent to the abolition of Cess on Service Tax w.e.f. 1.6.2015, please confirm if it is correct if we pay 5% only against these revenue.

Regards,

Manikantan

Sr.Manager - Finance