Subcontractor need to collect servicetax for SEZ unit

[Ravikumar muthusamy]

Respected Experts

Pls clarify if sub contractor in Tamilnadu provided  interior works to SEZ UNIT in other state but  raised bill to his main contractor in TN, he need to collect VAT& Service tax or utilize SEZ notification

[Madhukar N Hiregange]

The certificate from the SEZ should include that as a service and the SC in TN s name should be in it. otherwise there maybe a demand.

AI Summary

Service tax on services to SEZ: subcontractor needs SEZ certificate naming them to avoid a tax demand. The subcontractor's liability to collect service tax for services to an SEZ unit depends on a certificate from the SEZ that expressly treats the supply as a service and names the subcontractor; without such identification there may be a tax demand. VAT implications where billing occurs across states should likewise be managed through correct documentation and compliance.