03 March 2017
DEAR SIR, WE ARE A CIVIL CONTRACTOR FIRM . WE HAVE BEEN AWARDED A PROJECT FOR REHABILITATION AND IMPROVEMENT WORK OF A CANAL IN UTTAR PRADESH. THIS PROJECT IS FUNDED AND AIDED BY WORLD BANK.WE WANT TO KNOW WHETHER SERVICE TAX WILL BE LEVY ON THE CONTRACT AND SUB CONTRACTOR. IF SERVICE TAX IS EXEMPT WE REQUIRED ANY CERTIFICATE FROM SERVICE TAX DEPARTMEN .
Read more at: https://www.caclubindia.com/forum/service-tax-on-world-bank-aided-project-380462.asp
05 March 2017
If the canal work is awarded by govt authorities it is exempted from service tax. Sub contractors also exempted from service tax. No certificate from service tax dept is required. The work is exempted under sl. No. 12 of mega exemption notification 25/2012 ST.
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