My client is providing service to SEZ unit which is a stand alone unit operating only in the SEZ unit and now the confusion is whether the
SEZ unit needs to obtain the FORM A-1 as per the notification 17/2011, mentioned in point 2 (c) to obtain the benefit of exemption
under the said notification and after that the service provider will take that form and will not charge service tax on there billing to SEZ unit
or there is no need to give the Form A-1 by such SEZ unit ?
Clarification on SEZ Units: Form A-1 Required for Service Tax Exemption Under Notification 17/2011 for In-Zone Services Only. A client providing services to a Special Economic Zone (SEZ) unit seeks clarification on whether the SEZ unit must obtain Form A-1 to benefit from service tax exemption under notification 17/2011. The response explains that services to SEZ units can be exempted either through a refund of paid service tax or by not charging service tax for services consumed within the SEZ. For the latter, if the SEZ unit operates solely within the SEZ, it must provide a certified Form A-1 to claim exemption. The exemption applies only to authorized and approved operations. (AI Summary)
TaxTMI 
TaxTMI 
