SEZ SERVICE TAX

[Guest]

Dear all.

 

Since services to SEZ are treated as Exports either to Developer/Units, also fully exempted as per the notification 40/2012,  is it will be covered under the mega notification ( sl no 14 as PORT). SEZ as notified as PORT.

pls clarify with relavent points.

[Vijay kumar]

Dear Sir, while Notification No.42/2012 grants conditional exemption to services received in SEZ, Nofn.25/2012-ST grants exemption to services by way of construction, erection, commissioning, or installation of original works pertaining to an airport, port or railways, including monorail or metro. Thus, the latter covers certain specific services only. Further, the term "port" covered in therein is to be read in terms of Section 65B  (38) "port" has the meaning assigned to it in clause (q) of section 2 of the Major Port Trusts Act, 1963 (38 of 1963) or in clause (4) of section 3 of the Indian Ports Act, 1908; (15 of 1908). The distinction may therefore be taken note of.

AI Summary

Clarification on SEZ Services: Exemptions and Definitions Under Notifications 40/2012, 42/2012, and 25/2012-ST for Port Services A query was raised regarding whether services to Special Economic Zones (SEZ), which are treated as exports and fully exempted under Notification 40/2012, are covered under the mega notification as a port service. A reply clarified that Notification 42/2012 provides conditional exemptions for services in SEZs, while Notification 25/2012-ST exempts specific services related to construction and installation for ports, airports, and railways. The term 'port' is defined by relevant sections of the Major Port Trusts Act, 1963, and the Indian Ports Act, 1908, highlighting the need to distinguish between these definitions.