Vat on dam project aided by world bank

Sir,

As per Entry 12 of Notification No. 25/2012-ST, Service provided to the Government, local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of cannal, dam or other irrigation works exempt from service tax.

Now, coming to VAT, there is no such exemption from payment of VAT by State Government authority but 30% abatement is availible, therefore on only 70% value VAT is payable.

There is another way to clear this position, go to your work order, if there is given that WCT VAT will be deducted from your payment, then it is sure that VAT is applicable.

Hope, It will help you,

Regards.