1.
In exercise of the powers conferred by Section 93 (1) of section 93 of the
Finance Act, 1994
2.
In supersession of the notification No. 17/2011-Service Tax, dated the 1st
March, 2011.
3.
This notification shall come into force on the 1st day of July, 2012.
Exempts the services on which service
tax is leviable received by a unit located in a Special Economic Zone or
Developer of SEZ and used for the authorised operations.
4. Conditions for Exemption
(a) the exemption shall be provided by way of
refund of service tax paid on the specified services.
(1)
However if the specified services received in SEZ and used for the authorised
operations are wholly consumed within
the SEZ, the person liable to pay service tax has the option not to pay the
service tax
It
shall be considered as wholly consumed if such specified services received by the unit
of a SEZ or the developer and used for the authorised operations, where the
place of provision determinable in accordance with the Place of Provision of
Services Rules, 2012 ( POP rules) is as under:-
i) in respect of services specified in rule 4
of the POP Rules, the place where the services are actually performed is within
the SEZ ; or
(ii) in respect of services specified in rule
5 of the POP Rules, the place where the property is located or intended to be
located is within the SEZ; or
(iii)
in respect of services other than those falling under clauses (i) and (ii), the
recipient does not own or carry on any business other than the operations in
SEZ;
(2)
If specified services received by the unit of a SEZ or developer are not
wholly consumed within SEZ, maximum
refund shall be restricted to the extent of the ratio of export turnover of
goods and services multiplied by the service tax paid on services other than
wholly consumed services to the total turnover for the given period to which
the claim relates, i.e.,
(Export
turnover of goods + (Service
tax paid on services
Services
of SEZ Unit/Developer) X other
than wholly consumed
Services (both for SEZ and DTA)
Refund
amount =
----------------------------------------------------------------------------------------
Total turnover for the
period
Explanation.-
(A)“refund
amount” means the maximum refund that is admissible for the period;
(B)
“export turnover of goods” means the value of final products and intermediate
products cleared during the relevant period and exported;
(C)
“export turnover of services” means the value of the export service calculated
in the following manner, namely:-
(Export
turnover of services = payments received during the relevant period for
export services + export services whose provision has been completed for which
payment had been received in advance in any period prior to the relevant period
– advances received for export services for which the provision of service has
not been completed during the relevant period)
(D)
“total
turnover” means sum total of the value of-
(a) all excisable goods cleared during the
relevant period including exempted goods, dutiable goods and excisable goods
exported;
(b)
export turnover of services determined in terms of clause (C) and the value of
all other services, during the relevant period; and
3)
for the purpose of claiming exemption, the Unit of a SEZ or developer shall obtain
a list of services that are liable to service tax as are required for the
authorised operations approved by the Approval Committee (hereinafter referred
to as the specified services) of the concerned SEZ.
(4)
for the purpose of claiming exemption (i.e not refund) , the unit of a SEZ or
developer shall also furnish a declaration in Form A-1, verified by the
Specified Officer of the SEZ.
(5)
the unit of a SEZ or developer claiming the exemption shall declare that the
specified services on which exemption and/ or refund is claimed, have been used
for the authorised operations.
(5)
the unit of a SEZ or developer claiming the exemption by way of refund, should
have paid the amount indicated in the invoice, bill or as the case may be,
challan, including the service tax payable, to the person liable to pay the
said tax or the amount of service tax payable under reverse charge, as the case
may be, under the provisions of the said Act;
(6)
no CENVAT credit of service tax paid on the specified services used for the
authorised operations in a SEZ has been taken under the CENVAT Credit Rules,
2004;
(7)
no refund shall be available on services wholly consumed for operations in the
Domestic Tariff Area (DTA) worked out in the same manner as clauses (i) and
(ii) of the explanation to condition (a);
(8)
exemption or refund of service tax paid on the specified services other than
wholly consumed services used for the authorised operations in a SEZ shall not
be claimed except under this notification;
(9)
the unit of a SEZ or developer, who intends to avail exemption and or refund
under this notification, shall maintain proper account of receipt and use of
the specified services on which exemption is claimed, for authorised operations
in the SEZ.
10.
Procedure for claiming the benefit of the
exemption contained in this notification,
(a)
the unit of a SEZ or developer, who has paid the service tax leviable under
section 66B of the said Act shall avail the exemption by filling a claim for
refund of service tax paid on specified services used for the authorised
operations;
(b)
the unit of a SEZ or developer who is registered as an assessee under the
Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said
Act or the rules made thereunder, shall file the claim for refund in Form A-2
c)
the unit of a SEZ or developer who is not so registered under the provisions
referred to in clause (b), shall, before filing a claim for in Form A-3;
(d)
the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, shall, after due verification, allot a
service tax code number to the unit of a SEZ or developer, referred to in
clause (c), within seven days from the date of receipt of the said declaration, in
Form A-3;
(e)
claim
for refund shall be filed, within one year from the end of the month in which
actual payment of service tax was made by such developer or unit, to
the registered service provider or such extended period as the Assistant
Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as
the case may be, shall permit;
(f) the
refund claim shall be accompanied by the following documents, namely:-
(i) a copy of the list of specified services
as are required for the authorized operations in the SEZ, as approved by the
Approval Committee; wherever applicable, a copy of the declaration made in Form
A-1;
(ii)
invoice or a bill or as the case may be, a challan, issued in accordance with
the provisions of the said Act or rules made thereunder, in the name of the
unit of a SEZ or developer, by the registered service provider, along with
proof of payment for such specified services used for the authorised operations
and service tax paid, in original;
(iii)
a declaration by the unit of a SEZ or developer, claiming such exemption, to
the effect that—
(A)
the specified services on which refund of service tax claimed, has been used
for the authorized operations in the SEZ ;
(B)
proper account of the specified services received and used for the authorised
operations are maintained by the developer or unit of the SEZ and the same
shall be produced to the officer sanctioning refund, on demand;
(C)
accounts or documents furnished by the unit of a SEZ or developer as proof of
payment of service tax claimed as refund, based on the invoice, or bill , or as
the case may be challan issued by the registered service provider indicating
the service tax paid on such specified services, are true and correct in all
respects.
(g) the Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise, as the case may be, after
verifying that,-
(i)
the refund claim is complete in all respects;
(ii)
the information furnished in Form A-2 and in supporting documents correctly
indicate the service tax involved in the specified services used for the
authorised operations in the SEZ, which is claimed as refund, and has been
actually paid to the service provider,
shall
refund the service tax paid on the specified services;
(h)
a service provider shall provide the specified services falling under wholly
consumed category, under ab initio exemption granted by this
notification, to a unit of a SEZ or developer, for authorised operations,
subject to the submission of list specified in condition (c) under paragraph 2
and a declaration in Form A-1;
(i)
where any refund of service tax paid on specified services is erroneously
refunded for any reasons whatsoever, such service tax refunded shall be
recoverable under the provisions of the said Act and the rules made there
under, as if it is recovery of service tax erroneously refunded;
11.
Words and expressions used in this notification and defined in the Special
Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall
apply, so far as may be, in relation to refund of service tax under this
notification as they apply in relation to a SEZ.
Explanation.-
For the purposes of this notification, “statutory auditor” refers to a
Chartered Accountant who audits the annual accounts of the unit of a SEZ or
developer for the purposes of the Companies Act, 1956 (1 of 1956) or the Income
tax Act, 1961(43 of 1961).
No comments:
Post a Comment