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

SEZ service exemption principle: SEZ services treated as exports with separate infrastructure construction exemptions applying only to specified works. Services to SEZ developers or units are treated as exports and may be conditionally exempt under Notification No. 42/2012, whereas Notification No. 25/2012 ST separately exempts construction, erection, commissioning or installation of original works for airports, ports and railways; the latter is confined to those services and requires reading 'port' by reference to its statutory definition.