Construction services(mega)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2015 Dear experts,
According to MEGA exemption notification entry no.12 : construction services provided to Govt. are exempted.
But if the Principal contractor sub-contracted the services, whether
1. The services provided by the sub contractor is subject to service tax exemption or not.
2.what is the position of sub contractor
(a)Is he providing the services to principal contractor or
(b)is he providing the services to Govt.on behalf of Principal contractor.
Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 May 2015 Exemption presently available on Services provided to the Government, a Local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, shall be restricted only t o:
a) a historical monument, archaeological site or remains of national importance, archeological excavation or antiquity;
b) canal, dam or other irrigation work;
c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or sewerage treatment or disposal.
Exemption to Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port stands withdrawn.
See 29 h negative list.
(h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt.

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