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SERVICE TAX TO EOU UNITS

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30 March 2009 ARE EOU UNITS EXEMPTED FROM RECEIVING SERVICES WITHOUT SERVICE TAX

30 March 2009 As per India's foreign trade policy as applicable to STP and EOU units these units are exempt from payment of service tax.

http://dgftcom.nic.in/exim/2000/policy/chap-06.htm

Means they need not collect and pay service tax to the govt on the services provided by them and people who r providing services to these entities should not charge service tax to them.

31 March 2009
you say that people who provide services to these should not charge service tax to them.
but notification clearly says that they are exepted from charging service tax on services provided.
nowhere is it mentioned that service tax should not be charged to them. If we have to ask party's not to charge service tax than it is under which notification please clarify


31 March 2009 I beg to differ , there is no service tax exemption available to EOU/STPI units.If they provide taxable service to DTA , then they are liable for service tax payment. For the units which are registered under the STPI/EOU, they have the option not to pay any service tax on services exported out of the country. For provision of services to DTA, they are liable for service tax payment.

Now for units who are providing taxable services to EOU/STPI units, have to charge service tax.



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