Service tax will be charge???

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012 In any construction company providing service to Charitabe company (Not for profit organisation) -
which is sec. 25 companies under companies act 1956 and also exempt from income tax.

IS construction company need to charge service to non-commercial concern who is running charitabel hospital?

Pls help me whether we need to charge service tax on service to non commercial concern??

Gaurav Garg

Gaurav Garg (Expert)
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10 August 2012 As per Service Tax Law, Services Provided by way of construction of building owned by a entity registered under section 12AA of the income tax act 1961 and meant PREDOMINANTLY FOR RELIGIOUS USE BY GENERAL PUBLIC, then no service tax is required to be paid by construction entity, in other cases service tax is required to be charged (Refer Mega Exemptions)

Also Attention to New Provisions related to Reverse charge, now in respect of work contracts if service is provided by Individual/proprietary/HUF or Partnership Firm/AOP to Company under Companies Act,1956 then 50% service tax is required to be paid by Such Service Provider and 50% by Company.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2012 I am clear that if i am providing services/work contract to Charitable organisation, who register u/s 12AA of income tax will be exempt from service tax, i need not to charge service tax.

But what will be ans if i will sub-contracting work to sub-contractor, but thats service use for the company who registered u/s 12AA ??

Whether sub-contactor need to charge service tax..if he providing services to contractor and that will be use for construction of building who registered u/s 12AA ??

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Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2012 Please all service tax expert CA ...advice me??