24 July 2025
Hi! Here’s the clarification on **service tax on water supply by tanker**:
---
### Is service tax applicable on water supply by tanker?
* **No**, service tax is **not applicable on supply of water** (including water supplied by tanker). * Water supply is considered a **sale of goods** (tangible goods) and not a service under service tax law.
---
### Legal reference:
* The **Mega Exemption Notification No. 25/2012-ST dated 20.06.2012**, specifically **entry 41**, exempts services by way of **"water supply services"** from service tax. * Earlier, water supply was not treated as a taxable service anyway, but the notification clarifies exemption on services related to water supply.
---
### Summary:
| Activity | Service Tax Applicability | Reference | | ---------------------- | ------------------------- | ------------------------------------------------ | | Water supply by tanker | No service tax is payable | Mega Exemption Notification 25/2012-ST, Entry 41 |
---
If you want, I can provide the exact text from the notification for your reference. Would you like that?
CAclubindia
