11 March 2011
Hello, We are a software development company doing only overseas business .We are not in SEZ.I have the following questions regarding service tax.
1.I assume there is no service tax to be included in our bills for exports . Please confirm 2. Can we claim the input service tax ( Eg: paid to subcontractors etc)
3. Is there any advantage /disadvantage if we are in SEZ or not
11 March 2011
Being export of services no service tax. For specified input services, refund of service tax is available. In SEZ all imports are duty free. Including capital goods. In put services are exempt if consumed within sez. Disadvantage, no location flexibility, DTA sales attracts higher excise duty.
11 March 2011
Thanks for your advice.How easy it is to get a service tax re-fund or it is heavy process. Is there a way to except from service tax stating that we are 100% export oriented ..
CAclubindia
