Service Tax on Construction

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This query is : Resolved

Ajeet (Querist)

23 November 2009 Circular No_ 79-9-2004-ST related to Service tax on construction Services gives exemption to deduct tax on construction for educational, religious, charitable, health, sanitation or philanthropic purposes.
The relevant text of this Circular is as follows “The leviability of service tax would depend primarily upon whether the building or civil structure is used, or to be used for commerce or industry. The information about this has to be gathered from the approved plan of the building or civil construction. Such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthropic purposes and not for the purposes of profit are not taxable, being non-commercial in nature. Generally, government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally government constructions would not be taxable. However, if such constructions are for commercial purposes like local government bodies getting shops constructed for letting them out, such activity would be commercial and builders would be subjected to service tax.”
I am not sure whether this exemption will be available for any ‘Public Charitable Trust’ or only to government construction. Please reply. Thanks.