A policy revision for units in Karnataka special economic zones (SEZs) has withdrawn an earlier blanket exemption on service tax. Units will now have to pay service tax and claim refunds later. This has raised concerns among the units that they would require more cash in their kitties, as previous experiences in getting refunds have meant long delays. There is already a pending notification of Clause 10AA announced by the finance ministry in the interim budget concerning revised income tax exemptions. The good news is that the policy now requires SEZ units to be exempt from paying stamp duty up to 8 per cent and will be fully exempt from paying value added tax (VAT). VAT was to be earlier refunded.