Notification No. 18/2009
This query is : Resolved
23 May 2011
Dear All,
I wanna know that If any goods are exported in Special Economic Zone. Will the exporter be able to get advantage of Exemption of Service Tax for Transportation of goods by Road under Notification No.18/2009
Thanks & Regards
I wanna know that If any goods are exported in Special Economic Zone. Will the exporter be able to get advantage of Exemption of Service Tax for Transportation of goods by Road under Notification No.18/2009
Thanks & Regards
24 May 2011
No, The exporter cannot take advantage of exemption of service tax for transportation of goods by road under notification number 18/2009 because there are other exemption notifications applicable to service provided to SEZ.
03 June 2011
Sir,
Would u please clarify other rules so that we could avail the exemption of service tax.
Regards
Would u please clarify other rules so that we could avail the exemption of service tax.
Regards
03 August 2024
Notification No. 18/2009-Service Tax, dated 7th July 2009, provides for an exemption from service tax on the transportation of goods by road under certain conditions. Here's a detailed explanation of how this notification relates to exports, particularly for goods exported to a Special Economic Zone (SEZ), and other rules to avail the exemption:
### **1. Notification No. 18/2009-Service Tax Overview:**
- **Exemption Provided:** Notification No. 18/2009 exempts the service tax on the transportation of goods by road from the place of removal to a place outside the State or within the State. This is applicable when the goods are transported from the place of removal to the customer’s premises or a warehouse.
- **Scope of Exemption:** The exemption under this notification specifically applies to the transportation of goods by road. This exemption is granted to ensure that the cost of transportation is not added to the overall tax burden on the service.
### **2. Export to Special Economic Zone (SEZ):**
- **SEZ Exemption Provisions:**
- **Service Tax Exemption for SEZs:** Under the SEZ Act and corresponding notifications, services provided to or used by units in SEZs are generally exempt from service tax. This includes the transportation of goods to or from SEZs.
- **Interaction with Notification No. 18/2009:**
- **Dual Exemption:** If you are exporting goods to an SEZ, the service tax exemption for transportation under Notification No. 18/2009 and the SEZ-specific exemptions can both apply. This means that you can avail the benefit of service tax exemption for transportation as per Notification No. 18/2009 and also benefit from the SEZ exemption provisions.
### **3. Rules for Availing the Exemption:**
1. **Documentation:**
- **Transport Documents:** Ensure that transport documents such as invoices, bills of lading, and proof of delivery clearly specify that the goods are being transported to an SEZ. This documentation supports your claim for the exemption.
2. **Service Provider’s Documentation:**
- **Proof of Service:** The service provider should issue a bill or invoice without service tax for transportation services if the exemption under Notification No. 18/2009 applies. The invoice should clearly mention the exemption and the reason for the non-charging of service tax.
3. **Claiming Refund (if applicable):**
- **Refund Application:** If service tax has been charged and paid erroneously on transportation services that are exempt under Notification No. 18/2009, you may apply for a refund. Ensure that you maintain proper documentation and follow the procedure outlined by the Central Board of Indirect Taxes and Customs (CBIC) for claiming refunds.
4. **Compliance with SEZ Regulations:**
- **SEZ Notification Compliance:** Ensure compliance with SEZ regulations, which may include submitting relevant documents to SEZ authorities and adhering to specific procedural requirements.
### **4. Summary:**
- **Exemption Under Notification No. 18/2009:** This notification provides an exemption for transportation of goods by road, which can be availed if the conditions are met.
- **SEZ Exemption:** Goods exported to SEZs are generally exempt from service tax under the SEZ Act, which complements the exemption provided under Notification No. 18/2009.
- **Documentation and Compliance:** Ensure proper documentation and adherence to both Notification No. 18/2009 and SEZ regulations to avail the exemptions.
### **Action Steps:**
1. **Review Documentation:** Ensure all transport and export documentation are in order and reflect the exemptions correctly.
2. **Consult with Professionals:** For accurate application and to address any specific issues, consult with a Chartered Accountant or tax advisor familiar with service tax and SEZ regulations.
3. **Keep Updated:** Stay updated with any changes in notifications or regulations related to service tax exemptions.
By following these guidelines, you can effectively manage and benefit from the available service tax exemptions for transportation of goods to SEZs.
### **1. Notification No. 18/2009-Service Tax Overview:**
- **Exemption Provided:** Notification No. 18/2009 exempts the service tax on the transportation of goods by road from the place of removal to a place outside the State or within the State. This is applicable when the goods are transported from the place of removal to the customer’s premises or a warehouse.
- **Scope of Exemption:** The exemption under this notification specifically applies to the transportation of goods by road. This exemption is granted to ensure that the cost of transportation is not added to the overall tax burden on the service.
### **2. Export to Special Economic Zone (SEZ):**
- **SEZ Exemption Provisions:**
- **Service Tax Exemption for SEZs:** Under the SEZ Act and corresponding notifications, services provided to or used by units in SEZs are generally exempt from service tax. This includes the transportation of goods to or from SEZs.
- **Interaction with Notification No. 18/2009:**
- **Dual Exemption:** If you are exporting goods to an SEZ, the service tax exemption for transportation under Notification No. 18/2009 and the SEZ-specific exemptions can both apply. This means that you can avail the benefit of service tax exemption for transportation as per Notification No. 18/2009 and also benefit from the SEZ exemption provisions.
### **3. Rules for Availing the Exemption:**
1. **Documentation:**
- **Transport Documents:** Ensure that transport documents such as invoices, bills of lading, and proof of delivery clearly specify that the goods are being transported to an SEZ. This documentation supports your claim for the exemption.
2. **Service Provider’s Documentation:**
- **Proof of Service:** The service provider should issue a bill or invoice without service tax for transportation services if the exemption under Notification No. 18/2009 applies. The invoice should clearly mention the exemption and the reason for the non-charging of service tax.
3. **Claiming Refund (if applicable):**
- **Refund Application:** If service tax has been charged and paid erroneously on transportation services that are exempt under Notification No. 18/2009, you may apply for a refund. Ensure that you maintain proper documentation and follow the procedure outlined by the Central Board of Indirect Taxes and Customs (CBIC) for claiming refunds.
4. **Compliance with SEZ Regulations:**
- **SEZ Notification Compliance:** Ensure compliance with SEZ regulations, which may include submitting relevant documents to SEZ authorities and adhering to specific procedural requirements.
### **4. Summary:**
- **Exemption Under Notification No. 18/2009:** This notification provides an exemption for transportation of goods by road, which can be availed if the conditions are met.
- **SEZ Exemption:** Goods exported to SEZs are generally exempt from service tax under the SEZ Act, which complements the exemption provided under Notification No. 18/2009.
- **Documentation and Compliance:** Ensure proper documentation and adherence to both Notification No. 18/2009 and SEZ regulations to avail the exemptions.
### **Action Steps:**
1. **Review Documentation:** Ensure all transport and export documentation are in order and reflect the exemptions correctly.
2. **Consult with Professionals:** For accurate application and to address any specific issues, consult with a Chartered Accountant or tax advisor familiar with service tax and SEZ regulations.
3. **Keep Updated:** Stay updated with any changes in notifications or regulations related to service tax exemptions.
By following these guidelines, you can effectively manage and benefit from the available service tax exemptions for transportation of goods to SEZs.
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