Sir i just want to know that Cantonment Board whos statoury function under article 243P of consitution of india is sanitation and conservancy, Cantonment board float a tender for manpower supply for conservancy and sanitation services and give tender to the contractor. After that contractor by his own labour start performing sanitation and conservancy function i.e cleaning roads and open nallas(darins) and the person payment is only made after the report of sanitation inspector of cantonment board that garbage picking and cleaning is satisfactory . Also for above service cantonment board is not giving any service tax to the contractor saying that these services are statoury funciton of cantonment so service tax is not applicable on it. Sir my question is whether service tax is applicable on it or not.
Kindly help me in that regard.
Thanking You
Vivek
CAclubindia
