Service tax on Manpower supply

[Guest]

Whether service tax is to be paid on manpower supply bill raised by the contractor for the services provided under SEZ area.

[Guest]

As per exemption Notification 4/2004-ST dt 31.3.04 if the service provided is consumed within the SEZ, then full exemption is available. Thus, if the manpower supply bill is for the personnel working within the SEZ, then no service tax is applicable.

AI Summary

Manpower Supply in SEZ Exempt from Service Tax Under Notification 4/2004-ST for Services Consumed Within SEZ. A query was raised regarding the applicability of service tax on manpower supply bills issued by a contractor for services provided within a Special Economic Zone (SEZ). The response clarified that according to exemption Notification 4/2004-ST dated March 31, 2004, if the service is consumed within the SEZ, full exemption from service tax is available. Therefore, no service tax is applicable on manpower supply bills for personnel working within the SEZ.