Is Service Tax applicable on water pipeline/ drainage Services provided to MIDC

[Sumeet Tholle]

Dear All,

One of the my client provided services along with material to Maharashtra Industrial Development Corporation.

The services are water pipeline, construction of drainage line etc.

What about applicability of Service Tax ?

Is there any specific exemption ?

Pl. guide.

Thanks.

CA Sumeet Tholle

 

[YAGAY and SUN]

Please check mega exemption notification and negative list in this regard.

[Anuj Mehta]

Dear  Sumeet Ji,

                        In Regard of your above query, you can take the benefit  under 12^th entry of notification no 25/2012(MEGA EXEMPTION) ST dated 20.06.2012 

                        Please revert back in case you need any further clarification.

Regards

CA Anuj Mehta

09712286097

[email protected]

 

[Sumeet Tholle]

Dear Sir,

Thanks.

But Notification no 25/2012 is w.e.f. 01/07/2012.

My client providing this services since 2005-06 to Maharashtra Industrial Development Corporation.

Pl. guide.

CA Sumeet Tholle

[YAGAY and SUN]

At that particular time there was a specific exemption in this regard for lying pipe line for water projects.

AI Summary

Service tax exemption for water pipeline and drainage services may apply under mega exemption; earlier pipeline exemption affects past periods.
Applicability of Service Tax to water pipeline and drainage construction supplied with materials is contested; advisors pointed to the mega exemption notification as potentially exempting such infrastructure services going forward, while noting an earlier specific exemption for laying pipelines in water projects that may affect tax treatment for prior years.