Services provided to the Government, a local authority or a governmental authority with regard to water supply- (Ministry of Finance ) (22 Aug 2016)
MANU/DSTX/0054/2016
Service Tax
It has been reported to the Board that in some cases contractors providing service of construction of tube wells for Government have been considered to be liable to pay service tax.
The matter has been examined. The following exemptions are available in this regard:-
2.1 Vide Serial No. 12 (e) of notification 25/2012-Service Tax dated 20-6-2012-
"Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal".
2.2 Vide Serial No. 25(a) of notification 25/2012-Service Tax dated 20-6-2012-
2.2.1 In the period 1-7-2012 to 10-7-2014
"Services provided to Government, a local authority or a governmental authority by way of carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation".
2.2.2 In the period 11-7-2014 onwards
"Services provided to Government, a local authority or a governmental authority by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation".
Exemption under entries at Serial No. 12(e) and 25(a) of notification 25/2012-Service Tax dated 20-6-2012, will cover a wide range of activities/services provided to a government, a local authority or a governmental authority and will include the activity of construction of tube wells.
Tags : CONTRACTORS CONSTRUCTION SERVICE GOVERNMENT EXEMPTIONS
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