25 May 2014
Yes,the provider can claim exemption to pay service tax provided the services are wholly consumed within the SEZ.As per notification no.40/2012 the specified services received in SEZ and used for the authorised operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not to pay the service tax ab initio instead of the SEZ unit or the developer claiming exemption by way of refund in terms of this notification.
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