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 applicability: exemption for services to government doesn't extend to independent water boards, so O&M contracts attract tax.
The adviser addresses whether an O&M contract for a Water Supply and Sewage Board falls within the exemption for services to government or local authorities; applying the exemption wording for municipal functions, the adviser concludes the Board is an independent body and not a government/local authority, and therefore services under the O&M contract are taxable.