Applicability of service tax

[Guest]

SEZ exemption in lieu of recent notifications no.9 & 15 of 2009. It is totally not clear what position we have to take. We are doing services in the nature of architectural services from our office and also Project Management Services within the SEZ. We are charging % of fees on the works executed through our scope. Please clarify what stand we have to take on the applicability of service tax on our above two scope?

[Markesh Antony]

It is the duty of the both the parties i.e. service provider and service receiver to decide that what services are being consumed wholly withing the SEZ area or what are not. The query you have specified requires a detailed brain storming to determine the correct nature of service being provided to avail the benefit of notification no. 9/2009 as amended by notification no. 15/2009. The intention of the government is clear but it is again expected from the government that to formulate the guidelines and procedures to avoid the difficulties being faced by the SEZ units and service providers like the situation described in the query.

AI Summary

Service Tax Exemption for SEZ Architectural Services Hinges on Precise Consumption Analysis; Clarity Needed in Guidelines. A user inquired about the applicability of service tax for architectural and project management services provided within a Special Economic Zone (SEZ), referencing recent notifications. The response highlighted the responsibility of both service providers and receivers to determine which services are consumed entirely within the SEZ to benefit from the tax exemptions. It emphasized the need for detailed analysis to understand the services' nature and called for clearer government guidelines to address such issues faced by SEZ units and service providers.