Is it correct to demand service tax to govt. contractors ?. In recent days, there are so many demands raised by service tax authorities to the govt. contracors for the past 4 years. The contractors has to collect the service tax from concern govt. departments and has to pay in the govt. service tax account. Why in need of another hand. Can't departments collected service tax each other. why not Service tax can be exempt to these contractors..
indirect taxes does not maintain partialiaty between govt and non govt, and every taxable service provider has to collect and pay the taxes, if some govt organisation is to be exempted in public interest, department may exempt such organisation by public notice, and notify the same.
service tax does not have distinction between receipent of service tax, but they have clear viewpoint that under which juridiction these services are taxable and when not,
viz development work in case of airport, railway, dams is not under servicetax.
is service tax on govt contracts applicable before the date of 01.07.2012 govt contracts means maybe main contract or sub contract
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