TaxTMI 
TaxTMI 
Our company is a SEZ units. We receive services from outsiders and they claim service tax for the services provided to us. are we not exempted for service tax. Please clarify and also mention the sectioni.
John Shannel
Services to SEZ Units
09 Feb 2012 
5 Replies 
2982 Views Asked by
Service tax exemption for SEZ units requires filing a refund claim with prescribed documents to recover charged tax.
Services used for authorized operations in a Special Economic Zone are exempt when they are specified taxable services wholly used in the SEZ; otherwise, the recipient must claim a refund from the central excise authorities. Refund claimants must be registered or file a prescribed declaration to obtain a tax code, submit claims within the allowed time limit, and furnish specified supporting documents-approved list of services, supplier invoices with proof of payment and tax, and a declaration of actual use and accuracy-subject to officer verification and recovery of any erroneously granted refunds. (AI Summary)
Services used for authorized operations in a Special Economic Zone are exempt when they are specified taxable services wholly used in the SEZ; otherwise, the recipient must claim a refund from the central excise authorities. Refund claimants must be registered or file a prescribed declaration to obtain a tax code, submit claims within the allowed time limit, and furnish specified supporting documents-approved list of services, supplier invoices with proof of payment and tax, and a declaration of actual use and accuracy-subject to officer verification and recovery of any erroneously granted refunds. (AI Summary)