The issue is related with providing.laying,jointing,testing and commissioning of sewer line under sub contract as well as under direct contract with state government.Kindly enlight me regarding applicability of service tax on these non commercial activity. Whether there is any difference on applicability of service tax in respect with work order directly taken frm government or taken under sub contract from any private party.
10 August 2010
In the case of subcontract from private party the same shall be covered under service tax.
In the case of direct contract from state government, the same shall be exempt.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
10 August 2010
Respected Sir Thanks for your early and prompt response.Kindly guide me whether these government projects are covered under turn key projects.And regarding your answer, sir if the main contract is exempt is exempted,than why not the sub -contract for the same activity is exempted. Respected sir, I m little bit confused regarding these issues of contracter and sub contarctor doing work for state governments. Is there any kind of literature available by you, which can guide me, withput wasting ur much time. Regards
10 August 2010
According to my view. Govt projects also if it is public utility and non commercial purpose the exemption will apply, all other Govt. Turnkey projects/ EPC projects are liable to Service tax