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Service Tax Cenvat for SEZ

Samir Banerjee (Manager) (32 Points)

15 May 2009

Under recent Service Tax Notification No. 9/2009-ST, SEZ are exempted from Service Tax on all Out bound services, but initially SEZ are required to pay the tax and will be refunded thereon.

My query is can SEZ avail Cenvat credit of Service Tax and distribute the Cenvat Credit to their other DTA unit? Because claiming any kind of refund is hectic exercise and will increase the under table dealings.

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7 Replies

Sachin (Chartered Accountant) (419 Points)
Replied 16 May 2009

Dear Samir,

if you make centralised registration of the service tax, you can take benefit of the cenvat credit. but it is not an easy process. please write me your problem in detail sothat i can help you.

Thanks

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Samir Banerjee (Manager) (32 Points)
Replied 16 May 2009

We are SEZ. As per recent Service Tax Notification No. 9/2009-ST, SEZ units are required to pay servcise tax on services being outside SEZ, but the same will be refunded against Refund Claim as per the guidelines presrcibed in the above Notification.

Apart from SEZ, we have other EOU and DTA units. If we apply for centralized Service Tax Registration, can SEZ distribute the Service Tax to other EOU Unit or DTA unit of same SEZ If after availing Cenvat Credit.

If yes, what will be the procedure

Dinesh (Associate) (31 Points)
Replied 18 May 2009

hi,

can anyone guide me to claim the service tax? we are a manufacturing unit in a SEZ near chennai. do we need to get a service tax number? if so where should we get it? and who will give us the refund?

Samir Banerjee (Manager) (32 Points)
Replied 18 May 2009

Dear Dinesh

You are advised to simply follow the procedure as prescribed under Notfn No. 9/2009-ST dated 03/03/2009. Even you need any assistance, please feel free to ask

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 19 May 2009

If you were to take ISD registration with adeqyate dislcosure on the purpose being to utilise the credits of the SEZ which wouldbe used for DTA I think it is possible to do so.

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Vishal Gill (C.A.) (49 Points)
Replied 04 June 2009

Im my view if u get centralised registration of all units, SEZ as well as DTA. then CENVAT of all units is clubed and can be utiliised for payment of output liabuility whether it relates to DTA unit or any other unit. also unutilised CENVAT can be carried forward for any number of years. I thimk u r not qualified as ISD for SEZ unit bcz ISD basically a corporate office which is not providing any service.