Advertisement
Help
You are here: Rediff Home » India » Business » Report
Search:  Rediff.com The Web
  Advertisement


Service tax: More sops for SEZ units
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
   
  Advertisement
March 04, 2009 19:58 IST

The government has broadened the ambit of services exempted from service tax for Special Economic Zones as services provided to these zones even from outside would not be taxable.

The government has exempted the taxable services 'whether or not the said services are provided inside the Special Economic Zone', the Central Board of Excise and Customs said in a notification issued on Wednesday.

Currently, services provided physically in the SEZ like security and others are exempt from tax, while those provided by advertising agencies, management consultants and others from outside the zone are not.

The move to broaden the ambit of tax exemption even to services not physically provided in the SEZ will reduce the cost of production.

However, the process has been made lengthy as the service tax has to be paid first and then refund can be claimed, an expert said.

© Copyright 2009 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
   Discuss   |      Share with friends   |      Print   |   Ask a question  Ask a question   |  Get latest news on your desktop  Get latest news on your desktop

© 2009 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback