Service tax liability on sez

The services utilised within the SEZ are exempted from payment of ST. However the SEZ needs to have a list of services used within approved by development commissioner.

If your service in that list and the company decalres that they would not be liable in terms ofthe approval, then you need not charge the ST. Input credits in such cases can be utilised for other domestic services.

If no approval then you need tocharge the SEZ would be eligible for refund.