Applicability of service tax to lift irrigation projects?

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Y M Doshi (Querist)
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28 November 2012 Dear Professional Colleagues,

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.

Viral Vora

Viral Vora (Expert)
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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.

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Y M Doshi

Y M Doshi (Querist)
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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.

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