Service tax on work orders of uit or nagar nigam

Dear Mr. Prateek,

Please refer 25/2012 Service tax. Extract for your reference " 

25. Services provided to Government, a local authority or a governmental authority by way of -

1. carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or
2. repair or maintenance of a vessel or an aircraft.
3. Referred services provided can keep out of levy of service tax.

• However it is advised to obtain legal opinion from an expert who is practicing under Indirect tax. (for your reference and to share with dept. during their audit.)

Dear Venkatji ,

Thanks for your reply. Kindly clear me one more thing,  whether Nagar Nigam(s) or UIT(s) may be equated to local authority? As Service Tax department is not treating UIT(s) and Nagar nigam(s) as local authority and issuing demand notices to their contractors.

Dear Prateek ji,

To see that you have to obtain their audited financials and see how they are formed. I mean how they have funded (equity by the state or centrala on that basis it has to be decided).

Thanks