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Service tax rules

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Sanjeeb Ghosh

25 Points Posted on 13 February 2021

Sir,

As a Government civil contractor, & i have done a Market building work for municipal corporation in the year 2015-16 & 2016-17. Now i am getting service tax notice. Want to know whether Construction of a marked shed building for Municipal Corporation attract service tax.

Please Guide.

Regards,

Sanjeev

Replies (4)

Quick Summary

A civil contractor is seeking clarification on service tax applicability for a market building constructed for a municipal corporation between 2015-17. The contractor believes civil construction for government bodies is exempt, especially for original works. However, tax officers argue that market buildings are not exempt under notification no. 25/2012, as they are predominantly for commercial use, and are demanding penalty.

CA SEEMA AGARWAL

Chartered Accountant

201 Points Posted on 13 February 2021

In my opinion any kind of construction services pertain to original work performed for government or local body was exempted from service tax..
however exemption was only for original work
which means completely new construction or all kind of alternation to damaged building to make it workable

Sanjeeb Ghosh

25 Points Posted on 13 February 2021

The work order was for new construction of a new market building in the year 2013 . Subsequently the work was completed & i had received bills from 2013 to 2017.Now service tax officers are specially focusing that construction of Market building is not exempted from service tax in terms of notification no.25/2012.

CA SEEMA AGARWAL

Chartered Accountant

201 Points Posted on 13 February 2021

Only civil construction was allowed as exempt if your service is covered under civil construction then difinitely exempt else not

Sanjeeb Ghosh

25 Points Posted on 13 February 2021

Madam,

Only Civil construction work has been done by be. I am a Class -1 civil contractor. They have issued the letter demanding penalty & fine stating that as the building is a market "a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art:" i am not exempted vide notification no.25/2012 dated 20.06.2012.

If you are confident enough madam ,should i oppose.

Regards