07 November 2013
PROPRIETORY CONCERN BUSINESS OF WORKS CONTRACT IN CARPENTARY WORK TO SCHOOL & COLLEGES ARE WHETHER EXEMPETD FOR LEVY OF SERVICE TAX IN CONTRACT BILLS AS PER BOARD CIRCULAR NO 172/7/2013 ST DT 19.09.2013
08 November 2013
Works Contract for Carpentary work in an educational institution is neither education service nor auxilliary education services. CBEC Circular No. 172/7/2013 dated 19.09.2013 is just clarificatory. Para 4 of the circular goes on to clarify "In addition to the services mentioned in the definition of “auxiliary educational services”, other examples would be hostels, housekeeping, security services, canteen, etc.".
By no stretch of imagination or definition can the carpentry work be related to the definition of 'auxiliary education service' or the clarification enumerated in Para 4 of the referred circular.
It is my opinion that such contracts would NOT be exempted from levy of Service Tax.
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