Services provided within SEZ

Services provided to SEZ unit or SEZ developer for consumption within SEZ are exempt [Notification No. 4/2004-ST dated 31-3-2004 in respect of SEZ]. The wording of notification is such that services consumed within the zone are alone exempt. Thus services provided outside SEZ (e.g. customs clearance, transport etc.) are not exempt. Taxable services provided to a developer or a unit in SEZ are exempt from service tax [section 26(1)(e) of SEZ Act]. [rule 31 to SEZ Rules]
Services provided to foreign diplomatic missions, family members of diplomatic missions etc. – Any taxable service provided to foreign diplomatic mission or consular post in India is exempt vide Notification No. 33/2007-ST dated 23-5-2007.
Similarly, any taxable service provided for private use of family members of diplomatic agents or career consular
offices posted in a foreign diplomatic mission or consular post in India is exempt vide Notification No. 34/ 2007-ST dated 23-5-2007.
Services provided by RBI exempt – Exemption from service tax has been provided to all taxable services provided
by Reserve Bank of India. Services where RBI is liable to pay service tax are also exempt (Notification No. 22/
2006-ST dated 31-5-2006 – earlier Notification No. 7/2006-ST dated 1.3.2006).

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