Definition of body corporate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2015 Please tell definition of Body corporate , business entity as per service tax act.

WHETHER a nagar nigam comes under the definition of body corporate?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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01 July 2015 As per Notification 30/2012 dtd. 20.06.2012, reciever of service is requuired to pay service tax at prescribed percentage when certain services like manpower supply, security service, works contract, rent-a-cab etc. is provided by a proprietorship/ partner ship / society to a business entity registered as body corporate. Further difinition of body corporate is taken from section 7 of the companies Act, 1956 as amended. As per Section 7 of the companies Act A body Corporate " includes a copany registered outside India but does not include a proprietorship, Co-operative society, Corporate sole and any other company ( other than those registered under Compnies act,).

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2015 sir please tell whether a nagar nigam registered as local authority in THE UTTAR PRADESH MUNICIPAL CORPORATION ACT, 1959

can be considered as body corporate for service tax purpose?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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20 July 2024 Yes, a Nagar Nigam registered under the Uttar Pradesh Municipal Corporation Act, 1959, can be considered as a body corporate for service tax purposes. According to the definitions under the Service Tax law in India:

- **Body Corporate:** This generally includes any entity that is treated as a legal person and is capable of owning property and entering into contracts in its own name.
- **Local Authority:** Defined under Section 65(75) of the Finance Act, 1994, includes a Nagar Nigam or Municipal Corporation.

Therefore, Nagar Nigams registered under state municipal corporation acts are typically considered local authorities and, as such, they are treated as body corporates for service tax purposes. This means they are liable to pay service tax on certain services they provide or receive, subject to exemptions and thresholds specified under the law.

It's important to review the specific provisions of the Service Tax Act applicable during the relevant period to ensure compliance and accurate determination of service tax obligations.