Please help me to know, Whether Construction activity such as Lift Irrigation Schemes/Contracts are exempt from Service Tax or Services Tax is applicable to such schemes/contracts..?
If possible, also provide case study or say department clarification for your contention.
28 November 2012
Item No. 12 d of Not No. 25/2012 dt 20-06-2012 grants exemption to specified construction and other services provided to government or local authority or Governmental authority in case of canal, dam or other irrigation works.
28 November 2012
Dear Viral, Many Thanks for your reply.
I seek further clarification in the above subject matter. my query is as follows..
Suppose Company X has approached to the government for getting the Irrigation contract. And X has been awarded the contract from state government.
Further Company X outsourced the contract/partial contract to company Y.
So, considering above in the case of Company Y who bills to company X towards outsourcing/sub-contracting, Does Company Y shall be able to enjoy the service tax exemption as per Notification as ultimate customer in the given contract is State Government only.
CAclubindia
