service tax on research project

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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.

Replies (2)

There are some decisions where grants have been diffrentiated from income earned and held notliable. . In my view ST is not likely. Is the view of dept. provided in wirting?

 

According to me it is taxable (with out considering the cases where we can not co relate each point and also department does not accept  in such easy way) see here as I know this kind of services fall in the Management consultancy and by reading carefully meaning of Management consultant  that includes Other management  consultancy services that included  policy formulation  so service provided in the nature of making or assisting to make policy directly or indirectly is taxable .
 
 

Conclusion : it Taxable


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