21 December 2008
my client has been awarded civil construction job for a government college. is service tax applicable on such activity or is it exempt
21 December 2008
Though the activity squarely falls under explanation (ii)(b) of Sec.65(105)(zzzza) of FA 1994, if it is proved that the government college is not primarily for commerce and industry. Here, the exceptions as per circular dt.10.06.2004 may be taken shelter wherein it is stated that usually government constructions are for public utility purposes except that of commercial complexes, shoping complexes of government. However, it is a continuous debate that this circular has been given under Industrial and commercial construction services and cannot be applied to WC services category. But it should be seen the spirit of the circular behind it.
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