Applicability of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2016 Dear sir,
i have an query regarding Service tax applicability.

*NPCC (Govtt.Company) is sub-contracting a Contract to a contractor(i.e.a Company) for Construction of govtt. Hospitals in Bihar (Patna). and charging "Management consultant fee" for the Supervision of work done by the Contractor.
My question is that Is the "Management consultancy fee" which is charged by NPCC from party attracts for chargeable to service tax under Service tax act.????? Please explain me reason also.
If not, then please give me reference so that i can explain it to my client.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 May 2016 Yes, it attracts service tax in view of it not included in negative list and not considered exempt under NN 25/2012 ST.
However cenvat credit can be availed on it.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2016 No Sir its attracts under mega exemption 25/2012 and Here NPCC is working Like a pure Agent.

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