12 May 2014
Does mega exemption of service tax notification 25/2012 vide clause 13(d)is applicable to Operation and Maintenance of Sewage treatment plant located in a charitable hospital-( not a factory). At present the contractor is charging service tax on the Operation and Maintenance of sewage treatment plant. Can we claim exemption under the above notification and inform the contractor not to levy the service tax ?. Please send ur valuable views.
13 May 2014
Dear Sir As per my view service tax shall be levied.Reasons for my reply are: 1.The services mentioned in clause 13(d) of Mega Exemption List does not include operation of a effluent treatment plant. 2.Your contractor offers a comprenhensive service of operation and maintenance of the plant which falls under support service defination under clause 49 of Section 65B. 3.So the services provided by your cntractor falls most possibly under the head"Management,Maintenance or Repair Services"
I shall invite other experts to join in and share their views.
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