17 June 2015
Dear All, A direct contractor to one of the City Corporation in Tamilnadu. He undertakes maintenance jobs like fresh Water / Bore water pipeline, Cleaning of Overhead tanks on monthly basis, maintenance of borewell pumps etc. He is not registered under Service Tax. All PO offered by the Corporation is including Tax. Corporation deducts 5% towards WCT & 2% IT on payments. Payments are based on the M Book (Measurement Book) maintained by the Corporation and he does not raise any invoice or Running Bill.
My Query : Will he come under Major Exemption/Negative List or is liable to pay Service Tax?
17 June 2015
Dear Sir, as per my view, it is covered under mega exemption and therefore not liable for service tax (S.No.12(e) of 25/2012-ST dated 20.06.2012).
CAclubindia
