Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 8 reasons why old tax regime is still attractive for many taxpayers in this income tax bracket
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season

Is service tax applicable to a unit located in an SEZ?
July, 25th 2008

We are a company engaged in setting up of local area networks (LAN) for offices. We have been awarded a contract to set up the LAN facility for an enterprise based in a Special Economic Zone (SEZ). We are also required to extend the LAN facility to an office premise maintained by the client in Delhi. We have been informed that service tax would not be chargeable from the client as it is located in a SEZ. Is this stand correct?

As per the SEZ and service tax laws, taxable services provided to a unit located in a SEZ would be exempt from service tax only if the services are consumed within the SEZ. In case the services are provided to a unit located in a SEZ but are not actually consumed within the SEZ, service tax may be leviable. In your case, while services provided to the SEZ unit may be considered to be provided and consumed within the SEZ, services provided in relation to the premises in Delhi may be considered to have be consumed outside the SEZ. Accordingly, service tax may be leviable on the value of services attributable to the setting up of the LAN facility in the Delhi premises. You may bifurcate the total consideration, and charge service tax only on the amount chargeable in respect of services provided for the premises in Delhi.

We are a company engaged in sale of sanitaryware with branches throughout India. We maintain a stock of goods at our warehouse in Mumbai. Our branches place a requisition on the warehouse for supply of goods based on the orders we receive. Based on such specific requisition, goods are dispatched from the warehouse to the branches outside Maharashtra. Are we liable to pay sales tax in Maharashtra in respect of such transfers?

Under the central sales tax (CST) legislation, CST is levied on the sale of goods that occasions the movement of goods from one state to another. In the current case, transfer of goods from the warehouse to branch offices located in other states is made pursuant to the pre-existing order placed by the customers. Therefore, the sale of goods to the customers occasions the inter-state movement of goods. Accordingly, CST would be levied in Maharashtra with respect to such sales.

We have recently incorporated our 100% subsidiary company. We are providing various services to our subsidiary, which are liable to service tax...

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting