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Chargeability of service tax on service to State Government

This query is : Resolved 

20 October 2009 Can you pl explain the applicability of service tax on service rendered to State government (District e seva society a registered trust run by state government) under a contract namely "Jan Seva Kedra"?

In fact we have made a contract with state Government in which we have been given a space and computer with net connectivity at collector office for the job of accepting all the applications from public, forward the same to concern department under collector office, receive its feed back and then inform the same to applicant means single window system. We are paid Rs. 10 per application from the government and such receipt is exceeding Rs. 10 lacks during the year. For the service we have to hire staff only.

Is this service taxable?

If yes, under which head?

21 October 2009 The possible catgeory is BAS- services on behalf of another and BSS - transaction processing.
In both cases it talks about business. Since this is not a business whether there would be any liability at all. If said to be in relation to business then liability would exist.



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