Procedure of service tax refund/exemption to SEZreg.
CBEC has issued a circular no. F.No.B1/6/2013-TRU dtd 25.11.2014 after verification of an issue related to SEZ as below :
Issue -SEZ unit or developer has to approach two authorities (the SEZ authority and with the Jurisdictional Service Tax authority) for upfront exemption under notification No. 12/2013 dated 01.07.2013 as amended.”
The CBEC circular concluded that
“2. The issue has been examined. The procedure prescribed under the notification No. 12/2013 dated 01.07.2013 as amended is for proper accounting and monitoring of benefit availed by SEZ Unit and developer under the exemption. Further compliance verification at the service provider’s end (in domestic tariff area) would only be feasible if an institutional mechanism for accounting and verification procedure is in place. However, SEZ units and developer may, if they so desire, route their application for issuance of authorization by department through the specified officer of SEZ instead of submitting directly to the department. Similarly SEZ units and developer, may also route quarterly statement in Form A-3 through the specified officer in the SEZ. Notification No. 12/2013 dated 01.07.2013 as amended does not put any restriction in this regard.
3. Accordingly the field formations should not object if such requests/intimations are routed through the specified officer in the SEZ.”