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

 

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.