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Querist : Anonymous

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Querist : Anonymous (Querist)
06 May 2015 whether input service used for providing exempted output service is exempt from service tax?

like
input service of consultancy work used for providing output service which is exempted.
then whether this consultancy work is exempted from service tax.

06 May 2015 No, this consultancy work is not exempted.

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 May 2015 Thanks sir

In this case a contractor is providing consultancy service to a government authority who provide output service which is exempt as not no.25/2012

Now contractor demanding service tax from government authority in his bill but government authority deny to pay service tax amount to contractor on the basis that they provide exempt service

06 May 2015 See 29 (h) of Notification 25/2012.
(h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt.
Here it is consultancy work not works contract.


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