service tax notification no. 17/2011-ST dated: 01.03.2011

[Asked by Guest]

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.

AI Summary

Service Tax Exemption for SEZ services: refund route default; ab initio option for wholly consumed services.
Service tax on services received by SEZ units/developers for authorised operations is exempt subject to conditions; the default relief route is refund, while an ab initio exemption applies to services wholly consumed within the SEZ so that the service provider need not collect tax. Services exclusively used but shared with DTA qualify for refund via Table A of Form A 2. Qualification requires invoices naming the SEZ unit or stating supply for authorised operations, UAC approval, and accounting of receipt and use. Refunds arise where services are partly used outside SEZ or tax was paid unnecessarily; provider or recipient may elect not to pay ab initio.