service tax on research project

shirish nagchandi (AFO) (42 Points)

13 January 2010  

ours is an autonomous body of moef, we are receiving funds from our ministry and also  from other ministry  and foreign  organisations as grant in aid  for various research projects. the out put of the projects are to be implemented to form government policy.Service tax authorities have asked to deposit service tax on it saying it is management consultancy, because it helps the organisation to run  their management directly or indirectly. I wonder if government  is giving some grant to run research programmes ( for implementing their manifasto) , how it can be a consultancy . All the  readers are requested to give their valuable suggestions.