30 July 2010
If a contractor has taken a contract from undertaking govt for construction of hospital and on contract agreement there is no mention of any charitable purpose. so is service tax applicable on R.A Bill. And if Not then on what basis we should not add service tax.
02 August 2010
There is no provisions of specific exemption for constructions services to be provided to hospital project of a govt undertaking.
Therefore service tax obligation has to be met in due course. You may choose abatement option of 67% or composition scheme (works contract servcices) to reduce service tax effective burden, anyways.