sub contract service provided to a main conractor of a unit located in SEZ., Service Tax

[Dayananda P]

Ours is a partnership firm providing works contract service to a company  " ABC Ltd. "  which is the main contractor of a unit  " XYZ Ltd" located in the notified  special economic zone .  as per form A-1 submitted by the " XYZ Ltd."  , the " ABC Ltd.' s  service to the  XYZ Ltd.  is exempted abinitio.   ABC Limited  sub contracts  the same work to us . My question is Whether we are exempted from service tax on the service provided to  main  contractor i.e. ABC Limited  in the SEZ .

Posts / Replies

[TAPASH GHOSH]

You are exempted from service tax on the service provided to main contractor in the SEZ Unit if your name is incorporated as sub-contractor in Form A-1. This prove you as a sub-contractor in SEZ unit.

[Pradeep Khatri]

Your name should be mentioned in Form A-1 as subcontractor providing services to the Main Contractor to avail the exemption from the Service Tax for the units located in SEZ.