An EOU is deducting TDS u/s. 195 of IT Act. All the units making remittance to overseas parties are liable to pay Service Tax.
Since EOU units are already exempted from Service Tax, whether ST has to remitted for these payments or not ?? Please advice.
Service tax on imported services: EOU suppliers (excluding SEZ) must pay service tax but may claim refund subject to conditions. EOUs (excluding SEZ units) are liable to pay service tax on imported services; after payment they may claim a refund subject to specified conditions governing refunds. (AI Summary)