Exemption from service tax

This query is : Resolved

Suraj (Querist)
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04 December 2015 Dear Sir / Madam,

Company A, Mumbai is providing services to a Company B located SEZ, Kerala
where in Company A wont charge service tax as its services are exempt. However Company A has given this work to Firm P,
Mumbai to complete. My query is that:

1) whether Services provided by Firm P to Company A are also exempt from services?
If yes, which Form under Service Tax Act, the company A has to issue to Firm P? or

2) Firm P will continue to charge service Tax to Company A..?

Thanks
Suraj

Mahesh Paryani

Mahesh Paryani (Expert)
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11 December 2015 Greetings,

The company in SEZ needs to apply the service it wishes to receive and the vendor details to the department so as to exempt from CHARGE of service tax.

If not it needs to claim service tax refund from the department following the procedure.

In your case, assuming that the SEZ company has not given the details of firm P, Firm P needs to charge service tax and the SEZ company can claim refund for the same.