Regarding service tax liability in respect of construction of angadwadi and roads

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This discussion concerns the service tax liability for construction of Anganwadis and roads under a contract with Nagarpalika for the financial year 2016-17. The user is seeking clarification on potential exemptions, particularly referencing clause 12A of the Service Tax rules regarding services provided to local authorities. The contract was entered into on 15th April 2015, and the applicability of the exemption, especially concerning Anganwadi construction, is questioned.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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04 January 2023 Mr.A has contract with Nagarpalika. Work contract includes construction of angadwadi and roads.
Whether the service provided to the nagarpalika in respect of construction of angadwadi and roads liable for service tax for the financial year 2016-17 ? or any exemptions given in respect of services provided to the nagarpalika ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 January 2023 Service tax exempt for such services for that year.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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04 January 2023 The work contract date was 15th april 2015 and it was for 18 months. Is there any restrictions on exemption on angadwadi construction services ? Please refer to below clause 12A. Whether exemption will be granted or not ?

12A. 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 -
(a) a civil structure or any other original works meant predominantly for use other than for
commerce, industry, or any other business or profession;
(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art
or cultural establishment; or
(c) a residential complex predominantly meant for self-use or the use of their employees or
other persons specified in the Explanation 1 to clause (44) of section 65 B of the said Act;

under a contract which had been entered into prior to the 1st March, 2015 and on which
appropriate stamp duty, where applicable, had been paid prior to such date: provided that
nothing contained in this entry shall apply on or after the 1st April, 2020;”Inserted vide
Notification 9/2016- Service Tax to be in effect from 1 March 2016..
( whether The above para is for only clause C or for the all clause (a),(b) and (c) ??? )

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