Dear Experts,
As per entry number 12 of the notification no. 25/2012 dated 20/06/2012. i.e the mega exemption notification,
"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;
(b)....
(c).... and so on.
My question is that what is the exact intent and meaning of the words "a civil structure or any other original works meant predominantly for use OTHER THAN for commerce, industry, or any other business or profession;" ?? let us consider an example : Mr. X is a Contractor who provides errection and commissioning services to Paschim Gujarat Vij Company Limited(PGVCL), which is a 100% state government company. Will the service tax be applicable in this case ???
As per my interpretation, PGVCL is indulging in commercial activity because users get bill from the company for the usage of electricity. Hence it is a commercial/industrial activity. I need views of experts and friends here.
Please do comment.
Regards,
Karan.
CAclubindia
