Service provided by MIDC

[ANIL MANTRI]

MIDC provides effluent treatment service to the industries in particular MIDC to clean the polluted water of their factory before disposing off in water bodies. For this they charge amount on the basis of number of liter water treated. Will this service come under reverse charge as service provided by government or local authority and the companies need to pay service tax on it ? Companies are legally not allowed to dispose off water with-out treating them either by themself or through CETP maintained by MIDC.

[PAWAN KUMAR]

As per my view, Companies need to pay service tax at the rate of 100 percent on the amount to be paid to MIDC as per S.No.6 of Notification No.30/2012-ST dated 20.06.2012.

AI Summary

Industries must pay 100% service tax on effluent treatment services from MIDC, per Notification No.30/2012-ST. /2012 MIDC provides effluent treatment services to industries, charging based on the volume of water treated. A query was raised about whether this service falls under reverse charge as a service provided by a government or local authority, requiring companies to pay service tax. The response clarified that companies must pay 100% service tax on the amount paid to MIDC, referencing Notification No.30/2012-ST. Companies are legally required to treat wastewater before disposal, either independently or through MIDC's Common Effluent Treatment Plant (CETP).