EOU - exempted service

[Guest]

Respected Members, We are a 100% EOU registered under seepz and are in to activity of Pharmaceutical research and development services. We are registered under 'Scientific & Technical Services' We have a permission from seepz for DTA sales. Whether EOU are exempted from service tax in respect of such DTA sales. Please advise. Thanks and Regards Prashant Bhole

[Guest]

There is no general exemption available to EOU. However, a unit situated within SEZ shall be exempt from service tax.

[RadheyShyam Mangal]

no there is no exemption notification under service tax.

AI Summary

Pharmaceutical EOU Inquiries Reveal No Service Tax Exemption for DTA Sales; SEZ Units Enjoy Tax Benefits. A 100% Export Oriented Unit (EOU) engaged in pharmaceutical research and development services inquired about service tax exemption for Domestic Tariff Area (DTA) sales. Two responses clarified that there is no general service tax exemption for EOUs. One response noted that units within a Special Economic Zone (SEZ) are exempt from service tax, while the other confirmed the absence of any exemption notification for service tax applicable to EOUs.