HI,
We are awarding Work contract to Central Railways for maintaince work of rail track established in Plant area. Is service tax applicable in view of Negative list. Should we add Service tax clause in Work Order or not. Railway has not quoted Service tax in their offer. Please Suggest.
Vishwas.
Railways comes under Minister of raillways....
The service which you receive from Indian Railways covered under "Support service" defintion. Hence by virtue of notification no. 30/2012, you need to pay service tax under RCM @ 100%.
Hi,
It will be a works contract as there might be material involved in execution of mainatainance wrk. Railways must charge service tax as per valuantion rules and Reverse charge shall be 50 : 50 on both the parties.
Regards
I agree with Mallikharjun, and disagree with Jeevesh above. Government is not liable to pay tax on support services [Notification No.30/2012-ST dated 20 June 2012]
Hence, 100% reverse charge would be applicable.
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