Dear Sir,
On going through the notification no. 17/2011-ST, which has superceeded the earlier notification no. 09/2009-ST, it appears that if any SEZ unit is a standalone unit or it has not any other unit out side SEZ, or it has not any DTA sale, than all services received by such entity will constitute 'wholly consumed' services. Does the notification no. 17/2011 has any provision for refund of service tax on 'wholly consumed' services. if so please eleborate and if no, than how a unit of SEZ can get their refund of service tax involved in wholly consumed services.
Clarification on Service Tax Refund for SEZ Units Under Notification 17/2011-ST: Refunds for Wholly Consumed Services Explained. A participant inquired about the refund of service tax for 'wholly consumed' services by SEZ units under notification 17/2011-ST, which replaced notification 09/2009-ST. A respondent clarified that the notification exempts taxable services for SEZ operations, with a refund as the default option unless an upfront exemption is applied for wholly consumed services. The refund applies to services used exclusively for SEZ operations, as per specific criteria, and shared services are addressed separately. Another respondent highlighted that service providers or recipients can opt not to pay the tax initially, allowing recipients to claim refunds based on taxed invoices. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
