EOU UNIT - Service Tax Exemption

[Abdul Razack Basha]

Dear Sir,

Our  company registered as 100 percent EOU unit and having Green Card.

1.We are importing goods Nil rate of duty under Bond 2. We are procuring goods locally under CT-3 at the same time we are not getting any exemption for service tax against payment of Repair/AMC/Calibration charges/Testing charges etc, so please advise us for availing service tax exemption for EOU Unit and related notification if any.

Thanks & Regards

Abdul Razack.

[Madhukar N Hiregange]

There is no service tax exemption. You need to apply for refund under rule 5 of the cenvat credit rules.

[Abdul Razack Basha]

Thank you sir

AI Summary

Service tax exemption for EOU units unavailable; refund must be claimed under Cenvat Credit Rules. EOU status with Green Card and importation under bond or procurement under CT-3 does not confer service tax exemption on paid services like repair, AMC, calibration or testing; the administrative remedy is to claim refund of service tax paid under the Cenvat Credit Rules rather than rely on an exemption.