service tax applicable on work contact
This query is : Resolved
20 August 2016
Works contract carried out for Town Developmant Authority for laying of pipes for water supply & maintainence.Kindly inform about any Service Tax liability.
Works Contract carried out for University of Agricultural Science / Horticulture University for Water Supply, laying of Pipes and maintainence. Kindly inform about any Service Tax liability.
20 August 2016
Both the services are exempted from service tax vide NN 25/2012 ST.
22 August 2016
same service if rendered from 01-04-2011 to 30-06-2012.
If liable under the definition of work contact
24 July 2025
Regarding your query on service tax applicability on works contracts for laying pipes and maintenance for Town Development Authority and Agricultural/Horticulture Universities:
Current position (as of 2016):
According to Notification No. 25/2012-ST dated 20-06-2012, works contract services provided to local authorities, government entities, and universities (like Town Development Authority, Agricultural/Horticulture Universities) are exempt from service tax.
Historical position (01-04-2011 to 30-06-2012):
The works contract service was liable to service tax during this period under the definition of works contract service (introduced in Finance Act, 2010 and effective from 01-04-2011).
There were no specific exemptions for works contracts to local authorities or universities before Notification 25/2012-ST.
So, service tax was applicable on works contracts carried out during 01-04-2011 to 30-06-2012 for such clients.
The rate applicable was generally 12.36% (including cess).
CENVAT credit was allowed subject to conditions.
Summary:
Period Service Tax Liability on Works Contract to Authorities/Universities
01-Apr-2011 to 30-Jun-2012 Yes, service tax applicable on works contract services
From 01-Jul-2012 onwards Exempt under Notification No. 25/2012-ST
Current position (as of 2016):
According to Notification No. 25/2012-ST dated 20-06-2012, works contract services provided to local authorities, government entities, and universities (like Town Development Authority, Agricultural/Horticulture Universities) are exempt from service tax.
Historical position (01-04-2011 to 30-06-2012):
The works contract service was liable to service tax during this period under the definition of works contract service (introduced in Finance Act, 2010 and effective from 01-04-2011).
There were no specific exemptions for works contracts to local authorities or universities before Notification 25/2012-ST.
So, service tax was applicable on works contracts carried out during 01-04-2011 to 30-06-2012 for such clients.
The rate applicable was generally 12.36% (including cess).
CENVAT credit was allowed subject to conditions.
Summary:
Period Service Tax Liability on Works Contract to Authorities/Universities
01-Apr-2011 to 30-Jun-2012 Yes, service tax applicable on works contract services
From 01-Jul-2012 onwards Exempt under Notification No. 25/2012-ST
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