Service tax on sez

Notifications 965 views 2 replies

with ref to notification no 15/2009-service tax A)in paragraph 1 in the provision.
the sub para (c) it is said exemption claimed by developer will be refunded except for services consumed wholly with in sez.

our question

AS housekeeping services are wholy consumed with in the sez.the vendor need not collect the service tax hence the sez developer need not pay or claim. Is the above assumption correct?


 
Replies (2)
Originally posted by : tatarao

with ref to notification no 15/2009-service tax A)in paragraph 1 in the provision.
the sub para (c) it is said exemption claimed by developer will be refunded except for services consumed wholly with in sez.

our question

AS housekeeping services are wholy consumed with in the sez.the vendor need not collect the service tax hence the sez developer need not pay or claim. Is the above assumption correct?


 

Yes. services consumed wholy within the SEZ are completely exempted from service tax. 

The other services which are for authorised operations, tax on them can be claimed as refund after payment of the same.

Hence, your assumption is correct. Vendor cannot charge you on the same.


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