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Service to govt is taxable

Others 702 views 1 replies

visu iyer

mentor

834 Points Joined July 2008

Folks..

Under the BANKING and FINANCIAL services category, a banking company rendering service to RBI is exempt from TAX;

but

services rendered to Govt is taxable..!!

(eg. services to PF/ESI etc)

Pl. share the relevant case law reference and judgement there on..!!

The word "Government" is not defined in the Finance Act..?

and

moreso, we have more PPPs..

Experts.. pl share your opinion

Replies (1)

Vikas

1135 Points Joined January 2010

Dear Visu,

I think you have not referred the New Law properly.

The meaning is there for the government; which includes Central Government & State Government (including the department of the government like Income Tax Department, etc.) but would not include any government company, governmental company or any body established under any Act.

For further details, please refer to the education guide available on the www.cbec.gov.in site under service tax column.