Service tax(urgent)

This query is : Resolved

ATIT D SHAH (Querist)
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01 January 2013 Weather Service tax is applicable on services provided to Municipal corporations by way of Supply Erection Testing & Commissioning of new street light poles

Arun Gulati

Arun Gulati (Expert)
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01 January 2013 If the municipal corporations satisfied the definition of local authority then as per entry 12 of Notification 25/2012 they are not liable to pay service tax.
Local authority is defined under section 65(31) of the act as "(31) “local authority” means-
(a) a Panchayat as referred to in clause (d) of article 243 of the Constitution;
(b) a Municipality as referred to in clause (e) of article 243P of the Constitution;
(c) a Municipal Committee and a District Board, legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund;
(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006);
(e) a regional council or a district council constituted under the Sixth Schedule to the Constitution;
(f) a development board constituted under article 371 of the Constitution; or
(g) a regional council constituted under article 371A of the Constitution;"

if still not falling under local authority definition then you may also see governmental authority definition as exemption is available to both.