Applicability of Service Tax on Water Supply Scheme

Managing Director

We are executing a Water Supply Scheme under Urban Infrastructure Development Scheme for Small and Medium Township (UIDSSMT) of GOI on Turnkey basis consisting of construction of Intake well; Water Treatment Plant; Laying of Pipeline; Construction of Over Head Tank, including Designing Installation of Sub-station and Electric Pumps etc. Excise Duty on  all inputs are exempted under UIDSSMT. Please guide whether Service tax is applicable or not as the project is for Public Utility Services only.

B. R. Passey

 
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Advocate

Though the entire work is meant for public utility but you are executing on commercial basis under a specific project hence not exempted under service tax. There is no such provision in Service Tax which may help you in seeking exemption in the given cirucmstances.

 
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i am a recently quilified chartered accountant.my client has providing water suply services to some project they argued that the mensioned service is exempted service.please give me sugession regarding  wheather water suply contract is exampted or not

 
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Excise & Service Tax Consultant

Service tax will be applicable on water supply services, it is not covered under the mega exemption notification 25/2012.

 
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thanks for reply sir.thanku verymuch sir

 
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