Service tax exemption for a sez unit

Ajeet Singh (Querist) 22 June 2014 This query is : Resolved
Dear Members,

Here I would like to share one of my doubt regarding exemption and input credit of services tax for a manufacturing company which is in SEZ and at its Real Estate business in DTA zone where it is engaged in providing lease rental services.

Lease rental services

The Company providing lease rental services to tenants and charging services tax @12.36% on rent of immovable property, furniture and maintenance services there it is taking input credit adjustment of services relating to lease rental services i.e, repair and maintenance services of building, security services and upkeep services.

Input Services for manufacturing in SEZ

All taxes are fully exempt that are brought in SEZ area even we have to pay service tax on input services after obtaining certificate of exemption from development commissioner of SEZ as the final exemption can be issued by dept. of excise and customs but the authority have denied to issue us Form A 2 (Exemption Certificate of Service Tax) as they have verbally said that we cannot get the exemption at their end because we are already taking input service benefit relating to real estate lease rental and charging service tax.

So, please suggest me whether we should claim refund of input services that we are paying or we should go through another option with reference……

Thanking you,

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