service tax on research project

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shirish nagchandi

AFO

39 Points Posted on 13 January 2010

ours is an autonomous body of moef, we are receiving funds from our ministry and also from other ministry and foreign organisations as grant in aid for various research projects. the out put of the projects are to be implemented to form government policy.Service tax authorities have asked to deposit service tax on it saying it is management consultancy, because it helps the organisation to run their management directly or indirectly. I wonder if government is giving some grant to run research programmes ( for implementing their manifasto) , how it can be a consultancy . All the readers are requested to give their valuable suggestions.

Replies (2)

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 13 January 2010

There are some decisions where grants have been diffrentiated from income earned and held notliable. . In my view ST is not likely. Is the view of dept. provided in wirting?

muttu

Article

64 Points Posted on 13 January 2010

According to me it is taxable (with out considering the cases where we can not co relate each point and also department does not accept in such easy way) see here as I know this kind of services fall in the Management consultancy and by reading carefully meaning of Management consultant that includes Other management consultancy services that included policy formulation so service provided in the nature of making or assisting to make policy directly or indirectly is taxable .

Conclusion : it Taxable