Reverse Charge (GTA) and SEZ Unit

[Ashok Chopra]

Dear Forum,

I am SEZ unit receiving and sending goods through transporter, who is not charging any service tax as the transporter is not registered with service tax department.

My queries:-

1. Can SEZ unit be called as located in the taxable territory?

2. If yes, should i go for the exemption benefit and fulfill the formalities of Form-A1, Form-A2 and Form-A3?

3. If no, what should i do?

Thanks and regard

AI Summary

Reverse charge liability for GTA services in SEZs: exemption claim versus notification-based payment and refund obligations.
Whether a SEZ unit must discharge reverse charge for GTA services from an unregistered transporter or can rely on the Special Economic Zone entitlement to exemption for taxable services; advisors offered conflicting views-one asserting exemption for services to Developers/Units and the other pointing to a notification that subjects SEZ supplies to service tax with refund procedures-raising the related question of whether exemption formalities (Form-A1, Form-A2, Form-A3) must be completed if the unit is treated as located in the taxable territory.