Service tax on solid municipal waste contract services???

Transportation of goods by road is taxable under GTA. Can you argue that waste is not goods ?

Originally posted by : Imran
	Hi friends, My company is planning to enter into solid waste managment services. We have been sub-contracted one such project, where our scope of work is, so far, limited to collection and transportation of waste to waste processing facility. We have been sub-contracted this project by another company who has secured the entire municpal solid waste management, including collection & transportation, (GTA services ) processing of waste ( more details required to discuss) and landfilling operations. (site development services) My point is whether do we fall under the service tax net? If yes, then is there any possible arrangement under which we can avoid getting into the service tax obligations? Please note that the first company which has bagged the entire project will pick up 30% stake in this particular project. I was wondering if there is a way to form an arrangement with this company, so that we fall beyond the purview of service tax. Please advise soon as we need to implement this project by March 25. Thanks in advance.

taxable under service tax, unless the board exempt the same in public interest as services done in favor of public welfare, till now no such exemption notified)

Thanks for your quick responses.

@ Mr. Nair

"Goods Transport Agency is any person who provides service in relation to transport of goods and issues a consignment note ( by whatever name it is called)."

Reference: https://www.servicetax.gov.in/st-profiles-tpt-goods-roads.htm

Firstly, we are not registered as a GTA, since that is not the sole purpose of our existence. Secondly,  does this also apply when transportation of goods is a sort of support service?

"The consignment note should be serially numbered and it should contain name and address of the consignee and consignor, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax, whether consignee or consignor or the goods transport agency."

Reference: same as above

Does it apply to waste? I don't think we would be needed to do all that!

Can you help?

@ Mr. Sharma

Is it possible to seek the exemption? If yes, I guess it should be a lengthy procedure and should have it own rigmaroles??

@ Both

If service tax IS applicable, can you pls suggest some arrangment with the company I mentioned about in my post?

GTA services is applicable for service receipent for all payments towards transportation over 1500.

you have to pay service tax and charge to main contractor who is eligible to take credit of same and invoice to next party accordingly. 

@ Mr Sharma

Well, I have a doubt regarding the service tax liability of the orginal contracting company. This is because that company has bagged this project through competitive bidding from a municipality. The contract, which is for 30 years, makes this company the concessionaire to the agreement.

I suppose the concessionaire shouldn't be liable to pay service tax. Or is he?

Taxation is independent issue and obligatory to all govt bodies, however if the bidder has not made it available at the time of tender, and fails to make them understand the taxability then its lapse of their part, however they have to pay service tax, which they can not deny..........and regarding your job , they will get credit of whole service tax paid to you, in their tax liability.

I m not aware of their bidding period or terms but there must be some point to raise taxes and duties, seperately chargable ) its normal practice to tender) and if 1)he has made it consolidated then he will pay from his poacket, 2) he has made it available as , chargable at ruling rales , then the party will pay it pleasent way .

@ Mr. Sharma

"As per Service Tax credit Rules, 2002, every service provider (output service provider) shall be eligible to avail credit of the service tax paid by him to other service providers, in respect of the services (Input service) provided by them to him. Such availment should be in relation to the rendering of service by the service provider."

Reference: https://as.ori.nic.in/cenexbbsr/st_credit.htm

In our case, I suppose, the original company is the output service provider and we the input service provider. So, technically, that company will get the service credit tax. Did I get it right?

Originally posted by : Imran
	@ Mr. Sharma       "As per Service Tax credit Rules, 2002, every service provider (output service provider) shall be eligible to avail credit of the service tax paid by him to other service providers, in respect of the services (Input service) provided by them to him. Such availment should be in relation to the rendering of service by the service provider." Reference: https://as.ori.nic.in/cenexbbsr/st_credit.htm In our case, I suppose, the original company is the output service provider and we the input service provider. So, technically, that company will get the service credit tax. Did I get it right?

very much right, he will get credit of service tax charged by you in your bills, 

Ok. Thanks. So, it is now clear that service tax would be applicable to our business.

However, I m still at a loss to understand under which service category do we fall? Since the category is not clear, we don't even know of any such possible exemptions available to us.

Nevertheless, I would now request the experts here to suggest an arrangement whereby we would fall outside the purview of service tax obligations? Or there is no escape from this net?

Hiiiiiii......i would like to know as municipal corporation gives tender to a company and then company sublet the work related to collection and transportation of waste to an ngo so what are the tax implications????as the company is directly or indirectly providing the services so whether a company will be charged for tax or not? plssss guide me what are the tax implications in this case.......??????kindly help..............