08.19.06
Service Tax breaks to SEZ in pipeline
Service Tax breaks to SEZ in pipeline
The Ministry of Industry and Commerce is now planning to give service tax breaks to the companies opting to set up their units in the Special Economic Zones around the country. The companies which are already exempted from Service Tax in these SEZ’s are the companies that provide the services within the Special Economic Zone. Now the service providers having their units in SEZ will get this benefit too if this notification is issued. The export promotion council for EOUs and SEZ’s has taken up the issue with the government saying that “The SEZ Act clearly states that so long as a service is related to an authorised operation in an SEZ, exemption from service tax should be provided irrespective of where it is rendered.
Our Review: See, the Act is under and with the Government only and we feel that this Act is going to face amendments soon. How could be the finance ministry be happy with the Act when there is nothing that the government is getting from it. If it was upto the government, they would act as a sleeping partner in all the commercial activities going in the country.