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

Consultant Queries Service Tax Obligation for SEZ Services; Explore Threshold Exemption and Refund Process for Compliance. An independent software consultant inquired about the obligation to pay service tax for services provided to a Special Economic Zone (SEZ) unit. Respondents clarified that services to SEZ are considered exports, and there is a refund process for such taxable services. The consultant, lacking certain forms, questioned his tax liability. It was advised to first utilize the threshold exemption of 10 lakhs if not providing taxable services to entities other than SEZ/EOU. The procedure involves paying the service tax initially and then claiming a refund, as outlined in specific notifications.