Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Construction of fco godown- taxablility

SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)

20 February 2015

Whether construction of FCI godown will attract service tax after 01.07.2012?

Reply
Follow
Share

1 Replies

Vikas (CA) (1135 Points)
Replied 20 February 2015

Hi,

As I understand FCI stands for Food Corporation of India. Further, this is an office of Central/State Government, thus, should qualify for the meaning of ‘Government’.

There is a specific exemption provided for the construction activities provided to government, as per Para 12(a) of the Mega Exemption Notification No.25/2012-ST dated 20 June 2012, which is as under –

“12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -

(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;”

Hence, please check and examine whether the to be constructed building would be predominantly used for other than commerce, industry, or any other business or profession.