Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: empanelment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: form 3cd :: cpt :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARD :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
« Service Tax »
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST

Service tax clarity profit booster for SEZs
May, 23rd 2009

The government has provided the much-needed relief sought by developers or units inside special economic zones (SEZ).

Through a notification on May 20, the government has allowed developers or units to get the list of services specified in clause (105) of Section 65 of the SEZ Finance Act approved following which they shall be exempted from service tax.

Services consumed outside an SEZ will have to pay tax but these can be refunded later.
The developer or units of SEZ can claim such exemption provided no Cenvat credit of service tax paid has been already taken under the Cenvat Credit Rules, 2004.

Essentially, the effect of the May 20 notification is that developers or units will not have to pay service tax on services within the SEZ but will have to pay tax on services consumed outside the SEZ. This, however, can be claimed as refund later.

Developer and units benefit since their working capital will not be blocked.

For services consumed outside the SEZ the refund will mean no added cost for the developer or units and in that respect their profitability can be higher by 10.3% as the service tax component will not be an expenditure for them.

Earlier the government had, in a notification on May 31, 2004, exempted developers and units located in an SEZ from service tax for approved services within an SEZ.
Later, on March 3, 2009, the government made the developer as well as the units located in an SEZ first pay tax on services consumed both within an SEZ and outside and seek refund on the following conditions:

(a) the developer or units of SEZ shall get the list of services approved from the approval committee

(b) the developer or units claiming exemption actually uses the specified services in relation to the authorised operations in the SEZ;

(c) the exemption claimed by the developer or units shall be provided by way of refund of service tax paid on the specified services used in relation to the authorised operations;

(d) the developer or units claiming exemption have actually paid the service tax on the specified services;

(e) no Cenvat credit of service tax paid on the specified services used in relation to the authorised operations has been taken under the Cenvat Credit Rules, 2004;

(f) exemption or refund of service tax paid shall not be claimed except under this notification.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions