Prasad (Sr. Manager) (617 Points)
28 February 2012Dear All
We are providing COnsulting Engineering service to a SEZ, we are billing them without Service tax and receving payment for the same gross-TDS.
we are now asked to pay service tax against all the invoice for last 3 years with interest by the Department under rule 6(2) and 6(3). Is this justified if yes, is there any judgement where the assesse has got a releif.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 28 February 2012
As per my knowledge Services provided to a SEZ Unit is exempt from Service Tax u/s 65(105) of the Finance Act, 1994 provided that the services rendered to the SEZ Unit are wholly consumed within the SEZ. Hence, there is no need for the Service Provider to charge Service Tax in the Invoice raised on the services rendered to a SEZ Unit .
(Refer notification for details)
{Notification No. 09/2009ST dated 03.03.2009 (Prior to 03.03.2009 Notfn.No4/2004-ST dated 31.03.2004)}
Regards,
Devendra Kulkarni
Devendra
(Chartered Accountant)
(4775 Points)
Replied 28 February 2012
Have you received any notice from the Service Tax Department ordering you to pay the Service Tax Liability?
M.P.Tony
(Proprietor)
(34 Points)
Replied 28 February 2012
Prasad
(Sr. Manager)
(617 Points)
Replied 29 February 2012
Yes we are receipt of a SCN, based on audit done by them about a year back.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 29 February 2012
You can reply to the Show cause Notice by giving reference of the above mentioned notification and request the Adjudicating Officer to cancel the raised demand.
Regards,
Devendra Kulkarni
CAclubindia
