Tax on supply of water & mines safety
Querist : Anonymous
I want to know that I am business man engaged in Work Contract, and I have done huge work Rs. 40 Lakhs for Eastern Coalfields Limited and I have not charged any service tax on the job of Water Supply from ECL and the fund was for welfare fund which ECL grants for development of Panchayat Area, My question is whether the "Supply of Water" & "Mines Safety Job" are exempt from Service Tax or Not. As such the Work Order and Payment for the Water Supply was paid by ECL.
Please do reply.
Thank you.
Querist : Anonymous
The fact of the issue is that the Tender for Water Supply is made by Eastern Coalfields Limited and the payment was made by Eastern Caolfields limited, in this sense the actual receiver of service is Eastern Coalfields Limited but the actual work is done for the welfare of the Local Authority and for development of local area which ECL is bound to develop from there welfare fund.
1) Is the provider is bound to take service tax or not?
Querist : Anonymous
Then to prove that the work was done for the development of Panchayat Area and only the fund was provided by the Eastern Coalfields Limited, What are the materials required to prove that the Job was not in the purview of Service Tax and no evasion of Tax has been done in this case.
Thanking You.
25. Services provided to Government, a local authority or a governmental authority by way of -
(a) carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation;
Please see the above notification. If you get a letter from panchayath that the services are provided on their behalf service tax will not be attracted.
Querist : Anonymous
If the Panchayat did not give any Letter and instead of Panchayat The Eastern coalfields ltd gives the declaration that the fund / word order or tender was given to the Contractor for development of Panchayat Area, in the case Did the declaration made by the Eastern Coalfields limited will help that the final service receiver is Panchayat which is exempted from Service Tax.
As well do you have any case references similar to this in, in this regards which will help me to prove my point.
Thanking You.
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