Reverse Charge (GTA) and SEZ Unit, Service Tax

[Ashok Chopra]

Dear Forum,

I am SEZ unit receiving and sending goods through transporter, who is not charging any service tax as the transporter is not registered with service tax department.

My queries:-

1. Can SEZ unit be called as located in the taxable territory?

2. If yes, should i go for the exemption benefit and fulfill the formalities of Form-A1, Form-A2 and Form-A3?

3. If no, what should i do?

Thanks and regard

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

             Section 26 (e) the Special Economic Zone Act, 2005 stipulate that every  Developer and the entrepreneur shall be entitled to  exemption from service tax under Chapter-V of the Finance Act, 1994 on taxable services provided to a Developer or Unit to carry on the authorized operations in a Special Economic Zone.

            Therefore in my opinion you are not liable to pay any service tax.

[Raja krishnan]

Dear Sir,

Please go through the Notification No:12/2013 dated 01.07.2013 as follow this Notification you (SEZ) are applicable to pay service tax as well as refund the same. In this decision up to my end.