Service Tax - Reverse Charges - SEZ

[CABALRAM PANDEY]

Dear All,

 Kindly advice whether service rendered under reverse charge mechanism to a body corporate assessee located in SEZ by a non corporate assessee, require registration of SEZ assessee in service tax and discharge his liability of service tax under Reverse Charge Mechanism.  

 

Thanks

[YAGAY and SUN]

Yes, getting registration under Reverse/partial reverse charge is mandatory.  Service tax so paid can be applied for seeking refund.

[CABALRAM PANDEY]

Can u please guide me on this notification Notification No. 40 / 2012-Service Tax

AI Summary

Reverse charge liability: SEZ recipient must register and pay under reverse/partial reverse charge; refund claim possible.
Whether a non corporate supplier's services to a body corporate in a Special Economic Zone require the SEZ recipient to register and discharge service tax under the reverse/partial reverse charge mechanism; advisory response states registration is mandatory and tax so paid can be claimed as a refund.