SEZs TO GET TAX REFUNDS ON INPUT SERVICES

Developers of special economic zones (SEZ) and units inside can from now on claim refunds of taxes paid on all input services, regardless of whether the services are used inside or outside the tax-free zones, according to a change in rules notified by the government. The new rules means that developers and units inside SEZs will now have to first pay a tax on the services consumed and then claim a refund from the tax authorities. The refund can be claimed within six months from the date
of payment of taxes.