Audit Case Study Synopsis™ (5169)
Savings (square foot)
Exclusive Service Provider
RRG’s audit covered three (3) operating years.
It was noted during initial stages of the review that the business park, in which the client’s buildings were located, had been accorded a status to operate as a Special Economic Zone (“SEZ”). Under the SEZ Act of 2005 and rules of 2006, and service tax regulations, qualified SEZ developers received numerous incentives, including service tax exemptions. Following a review of information provided during the audit, it was confirmed that service taxes, contrary to the requirements of the act, had been included in the charges to and payments made by the client. We worked with all parties to model the correct payment amounts based on the appropriate expense obligations. The landlord noted they were unaware this was occurring and agreed to immediately post the credits in accordance with the audit to be offset against the client’s upcoming rents due.
Service Tax Exemptions