exemption of works contract service provided by subcontractor to maincontractor , who's works contract service is exempted

[shrikanth shetty]

ours is a partnership firm .  we are providing works contract service ( Original works )  to m/s  'A'  a Body corporate in a specified SEZ .  M/s  'A' got that works order   from m/s 'B'  which is a  company & developer of  a SEZ. . As per form A-1 & A-2  furnished by M/s B' to M/s 'A' , the works contract service provided by 'A'  to 'B' in the SEZ is exempt from service tax .   But m/s 'A' subcontracted the same work to us . we are issuing bill to m/s 'B'  mentioning the work details executed at SEZ area aginst particular work order.

please clarify me whether we can claim exemption from service tax on the works contract & labour contract  service  provided at SEZ ,  to m/s 'B'  on the strength of  sl.no. 29 (h)  of notification no 25/2012 ST  dtd. 20/06/2012 

AI Summary

Partnership Firm Can Claim Service Tax Exemption for Subcontracted Work in SEZ Under Clause 29(h) Notification 25/2012-ST A partnership firm is providing works contract services to a body corporate, M/s 'A', in a Special Economic Zone (SEZ). M/s 'A' received the contract from M/s 'B', a SEZ developer, and the service is exempt from service tax. The firm seeks clarification on whether they can claim the exemption for subcontracted work. The response indicates that they can claim the exemption under Clause 29(h) of Notification No. 25/2012-ST, as long as the main contractor's service is exempt. It is advised to formalize the agreement with the main contractor to prevent future disputes.