SERVICE TAX EXEMPTION FOR SERVICES TO CSEZ ,

[SINI BINU MANAGER-AACOUNTS]

Sir.

we are one of the service provideres to CSEZ unit/developer,earlier the service is exempted from service tax and hence we can claim this service as exempted.But i came to know that it is ammended that service tax provider is liable to provide service tax bill to the CSEZ uNITS AND THEY CAN ONLY CLAIM REFUND FOR THE SAME.kINDLY ADVISE.wE ARE PROVIDING THE SERVICES TO THE DEVELOPMENT COMMMISSIONER,CSEZ.

AI Summary

Service provider seeks clarity on service tax exemptions for SEZ units under Notification No. 17/2011 ST and 2011 Finance Bill. A service provider to a CSEZ unit seeks clarification on service tax exemptions, noting a change requiring service providers to issue service tax bills to CSEZ units, which can then claim refunds. Responses indicate that the 2011 Finance Bill introduced this amendment. According to Notification No. 17/2011 ST, services received by SEZ units are exempted either through a refund of service tax paid or direct exemption for services consumed within SEZs as per Export of Service Rules. Eligibility for these exemptions depends on the nature of the service and approval for authorized operations.