Service tax refund

We are located in SEZ and we are claming refund of service tax form the dept.

The outstation employees (involved in production) are being accomodated in a particular place out side the SEZ (like a hostel) and we are paying service tax on supply of food to the catering service company.

The service tax authorities are disallowing the claim stating it is not related to the production.

My query is whether a company located in SEZ is eligible to get refund only for service tax paid relating to production or eligible to get refund whatever they pay

Thanks in advance

 

Replies (1)

you can cliam refund only against services which are related to production or final output. Employee food, hostel ... will not be refunded even if the services are used within the SEZ

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