Last month we covered the key features of the recent exemption granted by notification 17/2011 for services provided to developers and units in special economic zones (SEZs) and the many problems it posed.
The primary lacuna in the notification was that it did not address a situation where services are not wholly consumed within the SEZ or shared with a unit in the domestic tariff area (DTA).
In such a scenario, it appeared that the only option would have been for the SEZ developer or unit to obtain a proportionate refund as per the formula prescribed.
Another concern was the unqualified restriction on availing of CENVAT credit in respect of services for which a refund was sought.
You must be a
to read this content, please
Economic Laws Practice is a full-service law firm headquartered in Mumbai with offices in New Delhi, Pune and Ahmedabad. Udayan Choksi, an associate partner at the firm, and Divya Jeswant, an associate, can be reached at firstname.lastname@example.org and email@example.com.
1502 A Wing, Dalamal Towers
Free Press Journal Road
Nariman Point, Mumbai 400021
Tel: +91 22 6636 7000
Fax: +91 22 6636 7172