Applicability on old contracts

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shiv kumar (Querist)
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16 July 2013 i have accepted a contract from election deptt in year 2010 including all taxes but service tax was not applicable at that time.now because of negative list it has become applicable . please clearify whether election deptt should reimburse the same or not.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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17 July 2013 The contract between the SP and client is final. However there is a princiapl - consessu idem- meeting ofminds - since ST was not there it could be said that the cost ofthe same was not considered at that time. Also that ST is a detination based consumption tax - ultimate user to pay. These arguments may help in negotiation.

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