23 January 2009
if a indian company performs a work given by another company situated in Special economic zone (puna),that work is to be performed for another comapny situated at singapore. sez unit company recieved payment in FCNR account from singapore company and charges 7% cut and give rest amount to indian company who actually performed the work at singaporeabout 93% in his FCNR account . Is the payment recieved by indian company from sez unit treated as export which is exempt from Service tax.
19 April 2009
Services provided to SEZ unit no longer stands exempted from service tax, therefore sevices rendered by you to the SEZ will be subject to service tax, for which the sez can claim.
You have not mentioned as to how you have billed the SEZ unit for receiving the payment. Whether, you have charged service tax which is inclusive of the payment received by you.
CAclubindia
