Exemption is available to both
Developer of Special Economic Zone
And
Units of Special Econmic Zones
From
Whole of service tax
Types of exemption
Option 1
Not to pay service tax at all ( ab initio exemption)
This option is available Where the services received by SEZ Unit or Developer are used exclusively for the authorized operations (export)
Option 2
Option to first pay service tax and then claimed refund
This option is available if
- when the specified services are not exclusively used for authorized operation, or
- when the ab initio exemption though admissible is not claimed on the specified services
when the specified services are not exclusively used for authorized operation, or
(Services which are common for authorized operations and SEZ operations)
It shall be distributed between authorized operations in SEZ and other operations as per Rule 7 OF Cenvat Credit Rules.
Refund is available on proportionate input on authorized operations
Important Points
- Claiming of this exemption is optional.Service provider may prefer not to claim this exemption
- Proper account of receipt and use of the specified services on which exemption is claimed,
Notification No. 12/2013 ST dated 01.07.2013
