SEZ service tax

[Guest]

Dear Sir,

I seek your advise on service tax. I am an independent software consultant and I provide software services as an individual.

I have been providing software services as a contractor/consultant to a SEZ unit which is itself a software services Company located in Bangalore.

My question is do I need to pay service tax for the software services provided to a SEZ unit?

Regards,

[KASTURI SETHI]

Dear Querist,

Service to SEZ is export of service. There is refund procedure for taxable services provided to SEZ. Go through Notification No.12/13-ST dated 1.7.2013 as amended vide Notification Nos.15/13-ST dated 21.11.2013, 7/14-ST dated 11.7.14, 2/16-ST dated 3.2.16 and 30/16-ST dated 26.5.16.

[Ganeshan Kalyani]

Yes rendering service to SEZ is a deemed export.

[Guest]

Sir, Thanks for the responses. Since I do not have Form A1 and Form A2, am I liable to pay service tax? Regards

[KASTURI SETHI]

Dear Querist,. Have you availed threshold exemption of RS.10 lakhs ?

[Guest]

I have not availed threshold exemption of 10 Lakhs.

Regards

[KASTURI SETHI]

If you are not providing taxable service to a person other than SEZ/EOU, first avail threshold exemption limit of ₹ 10 lakhs. Service to SEZ is treated as export and procedure has been laid down in above notifications. First pay ST and thereafter claim refund.

AI Summary

Export of service: services to SEZ are deemed export; pay service tax then follow refund procedure. Services supplied to an SEZ are treated as export of service and deemed export, attracting a statutory refund mechanism under specified notifications. Where the supplier has not availed the threshold exemption and lacks prescribed forms, the practical compliance route is to pay the service tax on supply and thereafter claim refund by following the notified procedural and documentation requirements.