Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: empanelment :: Central Excise rule to resale the machines to a new company :: cpt :: VAT RATES :: TDS :: due date for vat payment :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS
 
 
« News Headlines »
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj

Tax exemptions in SEZs only for actual exports
June, 21st 2006

News

21st June, 2006

Tax exemptions in SEZs only for actual exports

A service consumed within SEZs will not be considered as export and will invite service tax: FinMin.

The finance ministry has told the commerce ministry that services provided by hotels, hospitals or schools located in special economic zones would not constitute export of service and would be liable to service tax.

It has been decided that the exemption from service tax for service exports will be restricted to actual export of services from the SEZ. Any service which is consumed within the SEZs will not be considered as export and therefore will be liable to service tax, a finance ministry official told Business Standard.

If an overseas company seeks a service from a unit located in a SEZ but the service is consumed within the SEZ then too the service would not be treated as an export.

The unit will be exempt from service tax if the service actually leaves the SEZ and is consumed outside, an official said.

The ministry has also clarified that all import of services to a SEZ would be liable to the tax unless the services are used as an input or for value-adding to a product which is exported.

In such cases, the firm would be allowed to claim the amount of tax as an input credit.

Officials said the finance ministry had also made it clear that transfer of any old machinery from the domestic tariff area to a SEZ would not be eligible for tax breaks.

Similarly, splitting of companies and moving one of the companies into a SEZ would also not allow companies to enjoy the tax breaks.

In order to prevent land scams, the ministry has insisted that the processing area be increased to 35 per cent for multi-product SEZs from the earlier 25 per cent.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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