SERVICE TAX ON EOU

[VENKATASUBRAMANIAN VENKATACHALAM]

We are an EOU and have done software development to our wholly owned subsidiary. Please advice us whether Service Tax is applicable in view of FTP provision exempting EOUs frmo service tax. Best regards, Venkat

AI Summary

EOU's Software Services to Subsidiary Not Exempt from Service Tax Under Current Laws Despite FTP Provisions An Export Oriented Unit (EOU) inquired about the applicability of service tax on software development services provided to its wholly owned subsidiary, questioning if they are exempt under Foreign Trade Policy (FTP) provisions. The response clarified that no specific exemption for EOUs exists under the Service Tax Act, Rules, Notifications, or Circulars. Therefore, despite FTP provisions, service tax is applicable unless explicitly exempted by service tax law.