Statust of Service tax on Operation and maintenance of Sewage Treatment.

[RAKESH TOMAR]

Dear sir,

I am working as a contractor in local bodies. As per mega exemption I assume any services rendered to local bodies related to Sewage and Water supply are exempted from FY 2012-2013 on wards. I want to know the status in previous years. If exempted under which notification? and from which dated?

[Madhukar N Hiregange]

In the period before 1.7.12, the only services liable were those specified.

As your service is for local bodies it may notbe business support services, not cleaning services as that is restricted only to industrial and commercial buildings.

However further examination under maintenance of immovable property can be done. If not coming under that then there may be no liability for the activity.

AI Summary

Service tax exemption for sewage and water services to local bodies depends on service classification as maintenance or specified service. Query whether services to local bodies for sewage and water supply fall under the post 2012 mega exemption and which prior period notifications applied. Reply: before 1.7.2012 only specified services were taxable; sewage services for local bodies are unlikely to be 'cleaning services' (restricted to industrial/commercial buildings). Classification should be examined as maintenance of immovable property; absent classification as a specified taxable service or maintenance, there may be no service tax liability.