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NOTE:
Central Government has issued a notification no. 9/2009 ST dated 3-3-2009 to grant conditional exemption to units located in SEZ or developers of SEZ from service tax.
According to the new exemption notification, service provider shall not be exempt from payment of service tax. Instead has to pay service tax at appropriate rate on the taxable services provided by him to the units located in SEZ or developer of SEZ.
On the other side, the units located in SEZ or developers of SEZ are entitled to claim exemption by filing refund claim of service tax paid by the provider of service tax.
Consequently, notification no. 4/2004 ST dated 31-3-2004 has been withdrawn.