U/S 65 - Exemption to services provided to a developer or units of special economic zone

 U/S 65  - Exemption to services provided to a developer or units of special economic zone

Notification No. 4 / 2004 - Service Tax

31st March, 2004

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 ( 32 of 1994)  and    in supersession of the notification  of the Government of India in the erstwhile Ministry of Finance and Company Affairs ( Department of Revenue), No. 17/2002-ServiceTax, dated the 21st  November, 2002, published  in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section ( i ) dated the 21st November, 2002, vide, G.S.R.777(E), dated the 21st November 2002, except as respects things done or omitted to be done before such supersession , the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts   taxable service  of any description as defined in clause (90) of sub-section (1) of section 65 of the said Act   provided   to a developer of  Special Economic Zone  or  a unit (including a unit under construction) of  Special Economic Zone  by any service provider for consumption of the services within such Special Economic Zone,  from the whole of service tax leviable thereon under section 66 of the said Act, subject to the following conditions, namely:-

(i) the developer has been  approved by the  Board of Approvals  to develop, operate and maintain the Special Economic Zone;

(ii) the unit of the Special Economic Zone has been approved by the Development Commissioner or   Board of Approvals, as  the case may be,  to establish the   unit in the Special Economic Zone;

(iii) the developer or  unit  of a Special Economic Zone shall maintain proper account of receipt and utilisation of the said taxable services.

 Explanation .- For the purposes of this notification,-

(1) “ Board of Approvals ” means the combined Board of Approvals for export oriented unit and Special Economic Zone units, as notified in the Official Gazette, from time to time by the Government of India in the Ministry of Commerce and Industry;

(2) “ developer ” means  a person engaged  in development or operation or maintenance of Special Economic Zone,  and  also includes any person authorised for such purpose by any such developer;

(3) “ Special Economic Zone” means a zone  specified as Special Economic Zone  by the Central Government in the notification issued  under clause (iii) of Explanation 2 to the proviso to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944).

V. Kezo

Under Secretary to the Government of India

F. No. 305/55/2003-FTT