Service tax on service to govt org for medical college and h

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Can anybody tell me,

cASE:- if “X” is private limited company (Sub Service Contractor) and Providing Construction quality Consultancy Services to “Y” (Service Contractor) which is a government institution and “Y” is raising bills on “A’ who is a state Government for providing construction quality consultancy service ("A" is constructing medical college and hospital).  

My Question is 1) is service tax applicable in this case? 2) is service tax applicable between “A” And “Y” 3) is service tax applicable between “Y” and “X”.

regards,

Amol Joshi

Replies (1)

Dear Amol Joshi,

1) Service tax is applicable on Government organizations..

2) Service Tax is not applicable between  "A" & "Y in terms of Circular No,80/10/2004 -ST dated 17-09-2004(although service is taxable under "Commercial or Industrial Construction Services")

3) Service tax is applicable between "X" & "Y" under "Real Estate Agent Services"

 


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