Vide Notification No.9/2009-Service Tax dated 3/3/2009 the taxable services which are provided in relation to the authorised operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone,  have been exempted whether or not the said taxable services are provided inside the Special Economic Zone.

This exemption is subject to many condition, mainly :

1. approval of the taxable services from the Approval Committee
2. The taxable services are actually used in relation to the authorised operations
3. the exemption shall be available as refund
4.No CENVAT credit is taken for the said taxable services
5. exemption or refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall not be claimed except under this notification
6. the person liable to pay service tax  shall pay service tax as applicable on the specified services

For full text of the Notification Click Here http://www.servicetax.gov.in/servtax_notfns_idx.htm