Refund of Swachh Bharat Cess paid on specified services used in a SEZ

CBEC vide Notification No. 02/2016-Service Tax, Dated: February 03, 2016 has provided that the SEZ Unit or the Developer will be entitled to refund of the Swachh Bharat Cess paid on the specified services on which ab-initio exemption is admissible but not claimed. The refund of amount would be determined by multiplying total service tax distributed to SEZ/ developer by effective rate of Swachh Bharat Cess and dividing the product by rate of service tax specified in section 66B of the Finance Act, 1994 i.e. 14%.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION(i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 02/2016-Service Tax

New Delhi, the 3^rd February, 2016

G.S.R.….(E).– In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes following further amendments in the  notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2013 – Service Tax, dated the 1^st July, 2013 , published in the Gazette of India, Extraordinary, vide number G.S.R. 448(E), dated the 1^st July, 2013, namely:-

In the said notification, in paragraph 3, in sub-paragraph (III), after clause (b), the following clause shall be inserted, namely:-

““(ba) the SEZ Unit or the Developer shall be entitled to-

i. refund of the Swachh Bharat Cess paid on the specified services on which ab-initio exemption is admissible but not claimed; and

ii.  the refund of amount as determined by multiplying total service tax distributed to it in terms of clause (a)  by effective rate of Swachh Bharat Cess and dividing the product by rate of service tax specified in section 66B of the Finance Act, 1994.””.

[F. No. 332/18/2015-TRU ]

(K. Kalimuthu)
Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary,  by notification No. 12/2013 – Service Tax, dated the 1^st July, 2013, vide number G.S.R. 448 (E), dated the 1^st July, 2013 and last amended by notification No. 7/2014 – Service Tax, dated the 11^th July, 2014 vide number G.S.R. No. 476(E), dated the 11^th July, 2014.