Water provide in lorry to factory is come under service tax

Dear Pavazh,

Please refer to the below legal position, which states that Water is goods and any transfer of property in goods is not chargeable to Service Tax.

Hence, Service Tax should not be charged on supply of water in the given situation.

As per Entry 36 of First Schedule of AP VAT Act, Water, being goods is exempt from VAT under Sec. 7 of the Act, as below:

36	Water other than-
	i) aerated, mineral, distilled, medicinal, ionic, battery, de-mineralised water, and
	ii) water sold in sealed container

As per Sec. 65B(44) of the Finance Act,

"service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include—

(a)

an activity which constitutes merely,—

(i)		a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or
(ii)		such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause (29A) of article 366 of the Constitution; or
(iii)		a transaction in money or actionable claim;