Applicability of service tax on hydro projects


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Querist : Anonymous

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Querist : Anonymous (Querist)
26 April 2013 Dear Member

I have query that is Service tax is applicable on Hydro Power Projects?
Is there any difference in the Tunnel excavated for the Hydro Projects and tunnel for the purpose Irrigation Purpose?

27 April 2013 Transmission or Distribution of Electricity is covered under NEGATIVE LIST

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 April 2013 Sorry CA. Vinita Gupta you are not follow my question my question is simple if we are going to implement Hydero Project then service tax is applicable or not?

27 April 2013 While implementing Hydro Project you must have employed Labour. So it is a service and so Service tax applicable.

Can do define the nature of activities while Implementing the Hydro Project

04 May 2013 The Reply to your queries are as under:

1.Yes, since it is not covered under negative list.

2.Yes, there are differences.Tunnel for the purpose of irrigation is covered under negative list and as such exempted from the ambit of service tax.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 July 2013 Dear Mishra Saab
I am agree with your opinion, Because Hydro sector even not covered in the negative list as well as there is no earlier notification regarding exemption to Hydro Sector.
There are some profession who misinterpret Tunnel and roads, which are for the purpose of general public.

So according to me Hydro Sector is clearly Business activity and also service tax applicable on it.



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