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Did i have to collect service tax from semi-govt

adersh (engineer) (25 Points)

28 November 2014

did i have to pay service tax to operation and maintenance of electricity distribution, at a kerala govt industrial park.

equipments is of industrial park, but metered by kseb. negative list clause 11 is valid for it not. pls help.

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4 Replies

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 29 November 2014

If i am not wrong you are providing service to industrial park for operating and maintaining of electricity. If it is then service tax is applicable provided taxable service value exceeds Rs 10 lac.

The reason behind this is that entry no. 11 talks about generation & distribution of electricity by an electricity transmission.

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adersh (engineer) (25 Points)
Replied 29 November 2014

thank you Gagan Deep Singh,

but the situation is i am giving manpower for operation of substation (this substation is a part of distribution of electricity), and giving monthly salary to them . So actual profit will be very less below 10000 , so can i get refund of the same

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 29 November 2014

Your services fall under supply of Manpower. Please remember it does not matter how much actual profit you earned, for service tax applicability if the turnover of taxable services exceeds Rs 10 Lac then you have to pay service tax. You may refer notification no. 33/2012 for more clarity & may take the help of learned person for interpretation.

Manish K.Gandhi (Superintendent) (966 Points)
Replied 24 December 2014

For valuation of Manpower Service, any amount received for service viz. Salary/Wages, PF/ESI and whatever other amount received from service receiver towards service provided, is required to be added in Value of Service. Also it should be checked/confirmed whether KSEB is business entity registered as body corporate or other wise to ensure partial reverse charge mechanism in terms of N/N 30/2012-ST.