O & M Contract

[N Balachandran]

Dear sir

Could you pl tell me the service tax applicability on the O & M contract which is being exeucted for Water Supply and Sewage Board ( Govt dept ).  Will it attact the Service tax under Work contract Service?

Since the Work Contract service rendered for Water Supply Board is exempted from payment of Service tax, Will the exemption benefit is also available for O & M contract?  Pl clairfy

Regards

 N.balachandran

AI Summary

Service Tax Applies to O&M Contract for Water Board, Not Exempt as Government Service per Notification No. 25/2012-ST. An individual inquired about the applicability of service tax on an Operation and Maintenance (O&M) contract executed for a Water Supply and Sewage Board, questioning if it falls under the Work Contract Service exemption. The response referred to Notification No. 25/2012-ST, indicating that services provided to government entities related to municipal functions like water supply are exempt. However, it was noted that the Water Supply and Sewerage Board is considered an independent body, not a government or local authority, thus making the service liable to service tax.