Applicability of Service Tax in SEZ

[Guest]

I have a query :

Party X provided Works Contract Services of arond 1.6 crores and also willing to provide AMC to assesee located in SEZ at a very low cost in comparison to others.But Party X didnt have Service Tax Code(STC). The query is whether Reverse Charge Mechanism is applicable ? or whether assesee claim refund in Form A4 or not charging service tax in Form A3 ?( but both these form required STC to be filled in ).

[MUKUND THAKKAR]

Any service provided in SEZ is exempted, if contractor have not service tax number than right of exemption is not waive. please consult the authority and explain the fact and difficulty to avoid the payment of service tax.

AI Summary

Service Tax Exemption Confirmed for Services in SEZ Without STC; Consult Authorities for Refund Guidance. A query was raised regarding the applicability of the Reverse Charge Mechanism for a service provider, Party X, offering Works Contract Services and AMC to an assessee in a Special Economic Zone (SEZ) without a Service Tax Code (STC). The question was whether the assessee could claim a refund or not charge service tax using specific forms requiring an STC. The response clarified that services provided in an SEZ are exempt from service tax, and the lack of an STC does not negate this exemption. It was advised to consult authorities to clarify the situation and avoid unnecessary tax payments.