sub contract service provided to a main conractor of a unit located in SEZ.

[shrikanth shetty]

Ours is a partnership firm providing works contract service to a company  " ABC Ltd. "  which is the main contractor of a unit  " XYZ Ltd" located in the notified  special economic zone .  as per form A-1 submitted by the " XYZ Ltd."  , the " ABC Ltd.' s  service to the  XYZ Ltd.  is exempted abinitio.   ABC Limited  sub contracts  the same work to us . My question is Whether we are exempted from service tax on the service provided to  main  contractor i.e. ABC Limited  in the SEZ .

[TAPASH GHOSH]

You are exempted from service tax on the service provided to main contractor in the SEZ Unit if your name is incorporated as sub-contractor in Form A-1. This prove you as a sub-contractor in SEZ unit.

[YAGAY and SUN]

Your name should be mentioned in Form A-1 as subcontractor providing services to the Main Contractor to avail the exemption from the Service Tax for the units located in SEZ.

AI Summary

SEZ subcontractor exemption applies only if the subcontractor is expressly named in Form A-1 to claim service tax relief.
Subcontractors supplying works contract services to a main contractor for a notified SEZ unit are eligible for service tax exemption only if the subcontractor's name is incorporated as a subcontractor in Form A-1 submitted by the SEZ unit; such inclusion constitutes the prerequisite evidentiary basis for claiming the exemption.