Service tax for software exports

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satheesh (Querist)
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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

Thanks in advance

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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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.

satheesh

satheesh (Querist)
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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 ..

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CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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14 March 2011 Refund is a simple mechanism.