Negative list query against notification no. 12/2012
This query is : Resolved
13 August 2013
Kindly suggest me that :-
1. what is the meaning of Sr.No. 12(a) of Negative List of service Tax i.e Other original work meaning ??
2. If service receiver is paying service tax then it is mandatory for service provider to pay tax in case service provider is lied in Negative list exemptions.
1. what is the meaning of Sr.No. 12(a) of Negative List of service Tax i.e Other original work meaning ??
2. If service receiver is paying service tax then it is mandatory for service provider to pay tax in case service provider is lied in Negative list exemptions.
14 August 2013
1)original works means-
a)all new constructions or
b)all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable.
2)If the provider is in negative list or below 10 lacs category, service tax is not applicable.
a)all new constructions or
b)all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable.
2)If the provider is in negative list or below 10 lacs category, service tax is not applicable.
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15 August 2013
If service is list in the negative list u/s. 66D then tax is not leviable u/s. 66B. Hence, receiver also will not be liable
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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09 October 2014
What in case, if service provider is lying in the services under notification 25/2012 under Sr.No.12(a) ??
Is he liable to pay service tax ?
Is he liable to pay service tax ?
03 August 2024
To address your queries about the Negative List under Service Tax Notification No. 12/2012 and the implications of Notification No. 25/2012, let's break down each part:
### **1. Meaning of Sr.No. 12(a) of the Negative List**
#### **Understanding Sr.No. 12(a) of the Negative List:**
Sr.No. 12(a) in the Negative List under Notification No. 12/2012 refers to:
**"Services provided by a person to another person in relation to the construction, maintenance, or repair of roads, bridges, tunnels, and other infrastructural projects of a similar nature"**
**"Other original work"** in this context typically means the construction or creation of something new, which is not merely repairing or maintaining existing structures but involves substantial new work.
**Examples include:**
- Construction of new roads or bridges.
- Building new infrastructure like flyovers or tunnels.
- Developing new residential or commercial projects.
### **2. Service Tax Liability**
#### **a. Service Receiver Paying Tax:**
If the service receiver is paying the service tax (reverse charge mechanism), it means that under the reverse charge mechanism, the service receiver is responsible for paying the tax to the government.
**However, this does not absolve the service provider of their obligation to comply with the tax regulations.** The service provider must still ensure that the transaction complies with all relevant tax laws.
#### **b. Exemptions under Notification 25/2012:**
Notification No. 25/2012 provides various exemptions from service tax, including:
**Sr.No. 12 of Notification 25/2012:**
**"Services provided by a person to another person in relation to the construction, maintenance, or repair of roads, bridges, tunnels, and other infrastructural projects of a similar nature."**
If the service provider falls under this exemption (i.e., their service is related to infrastructure projects as defined), then:
1. **Service Provider's Obligation:**
- If the service provider's activity falls under the exempted category (e.g., construction of roads, bridges, etc.), they are not required to pay service tax on the services they provide under this exemption.
- They must ensure that their service genuinely qualifies for exemption under Notification No. 25/2012.
2. **Documentation and Compliance:**
- The service provider must keep proper documentation to support their claim for exemption, including contracts, invoices, and any other relevant documents that justify the exemption.
- They should also be prepared to provide proof to the tax authorities if required.
3. **Service Receiver's Liability:**
- Even if the service provider is exempt under Notification No. 25/2012, the service receiver may still be required to pay service tax under the reverse charge mechanism if the service is covered by it.
### **Summary:**
- **Sr.No. 12(a) of the Negative List** deals with the exemption of services related to substantial original work in infrastructure projects.
- **Service Providers** in these sectors, if qualifying for exemption under Notification No. 25/2012, are not required to pay service tax.
- **Service Receivers** may need to pay tax under the reverse charge mechanism if applicable, but this doesn’t override the provider’s exemption status.
Ensure that you review the detailed notifications and related circulars or consult a tax professional to ensure compliance with the current tax laws and to address any specific nuances related to your situation.
### **1. Meaning of Sr.No. 12(a) of the Negative List**
#### **Understanding Sr.No. 12(a) of the Negative List:**
Sr.No. 12(a) in the Negative List under Notification No. 12/2012 refers to:
**"Services provided by a person to another person in relation to the construction, maintenance, or repair of roads, bridges, tunnels, and other infrastructural projects of a similar nature"**
**"Other original work"** in this context typically means the construction or creation of something new, which is not merely repairing or maintaining existing structures but involves substantial new work.
**Examples include:**
- Construction of new roads or bridges.
- Building new infrastructure like flyovers or tunnels.
- Developing new residential or commercial projects.
### **2. Service Tax Liability**
#### **a. Service Receiver Paying Tax:**
If the service receiver is paying the service tax (reverse charge mechanism), it means that under the reverse charge mechanism, the service receiver is responsible for paying the tax to the government.
**However, this does not absolve the service provider of their obligation to comply with the tax regulations.** The service provider must still ensure that the transaction complies with all relevant tax laws.
#### **b. Exemptions under Notification 25/2012:**
Notification No. 25/2012 provides various exemptions from service tax, including:
**Sr.No. 12 of Notification 25/2012:**
**"Services provided by a person to another person in relation to the construction, maintenance, or repair of roads, bridges, tunnels, and other infrastructural projects of a similar nature."**
If the service provider falls under this exemption (i.e., their service is related to infrastructure projects as defined), then:
1. **Service Provider's Obligation:**
- If the service provider's activity falls under the exempted category (e.g., construction of roads, bridges, etc.), they are not required to pay service tax on the services they provide under this exemption.
- They must ensure that their service genuinely qualifies for exemption under Notification No. 25/2012.
2. **Documentation and Compliance:**
- The service provider must keep proper documentation to support their claim for exemption, including contracts, invoices, and any other relevant documents that justify the exemption.
- They should also be prepared to provide proof to the tax authorities if required.
3. **Service Receiver's Liability:**
- Even if the service provider is exempt under Notification No. 25/2012, the service receiver may still be required to pay service tax under the reverse charge mechanism if the service is covered by it.
### **Summary:**
- **Sr.No. 12(a) of the Negative List** deals with the exemption of services related to substantial original work in infrastructure projects.
- **Service Providers** in these sectors, if qualifying for exemption under Notification No. 25/2012, are not required to pay service tax.
- **Service Receivers** may need to pay tax under the reverse charge mechanism if applicable, but this doesn’t override the provider’s exemption status.
Ensure that you review the detailed notifications and related circulars or consult a tax professional to ensure compliance with the current tax laws and to address any specific nuances related to your situation.
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