Service tax on construction service

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12 April 2013 My client has provided construction service to educational institute/college (M.S. University of Baroda). M.S. University is not giving service tax on the bill amount arguing that it is not liable to pay any service tax. Let me know the notification number of exemption if any on the basis of which M S University of Baroda claims that it is not liable to pay service tax and therefore will not pay the same along with bill amount.

16 April 2013 see notification No. 25/2012 (mega exemptions), entry No. 12
construction/ erection/installation of a civil structure or any other original works meant predomianntly for use other than for commerce, industry, or other business or profession......

Hence the said client has no requirement to charge the service tax on the said bill, as the service itself is exempt when provided to educational insti or hospitals etc which do not belong to commerce industry.
contention of the insti is correct.

16 April 2013 see notification No. 25/2012 (mega exemptions), entry No. 12
construction/ erection/installation of a civil structure or any other original works meant predomianntly for use other than for commerce, industry, or other business or profession......

Hence the said client has no requirement to charge the service tax on the said bill, as the service itself is exempt when provided to educational insti or hospitals etc which do not belong to commerce industry.
contention of the insti is correct.

cavikasacharya@gmail.com


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