ST Excemption for School - under Work COntract Service

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This query is : Resolved

Maitri Ketan Gada (Querist)

09 May 2011 The Partnership firm is having Service Tax Registration under Work Contract.Firm Undertake Construction Contract from Difference Companies and Gove Authorities. Recently one Contact of 2 Cr is awarded from School. The School is not ready to pay service Tax.(Is there any Exemption for Service Provided to Charitable Trust(School?) or party has to pay Service Tax from his pocket. If Exempted what is procedure & what proof required from the Schhol?. Either to claim refund or not to charge & Pay Service Tax on such Services.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

09 May 2011 The entry under which the construction of school may fall is commercial construction [ as it is or within works contract] If so when done for a charitable institution whether it can be called a commercial construction.
In the past, there was a circular which mentioned that schools and hospitals would not be liable as long as they were charitable.
Lately the understanding of the revenue seems to have changed and they may demand the monies thereof.
It is better to write to the revneu stating that there is no reqwuirement ot pay as per your understanding.