Service tax on Services of Operation and Maintenance of Sewage Treatment Plant

[RAKESH TOMAR]

Dear sir,

Thanks for your reply. I would also like to request your goodself to let me know whether the maintenance of immovable properties (as mentioned by you) of Sewage Treatment Plant under Local Bodies ( Civil Construction, structures and Equipment needed to operate the STP like pumps, D.G. Set, Electrical Sub-station etc.) will fall under the purview of service tax.

[Madhukar N Hiregange]

Matter not clear. Should not  due to entry 39 of the mega exemption - services by a govt authority by way of functions entrusted to municipality ...Read with 29 h) sub contractor providing services by way of works contract to another works contractor providing services which are exempt.  

Representation prior to next budget may solve this open issue. In meantime write under speed post to dept and confirm your understanding.

AI Summary

Service Tax Not Applicable on Sewage Treatment Operations by Local Bodies Due to Mega Exemption Entry 39. A query was raised regarding the applicability of service tax on the operation and maintenance of sewage treatment plants, specifically concerning immovable properties under local bodies. The response indicated that such services might not be subject to service tax due to entry 39 of the mega exemption, which covers services provided by a government authority related to municipal functions. It was suggested that clarification could be sought through representation before the next budget, and in the meantime, it was advised to confirm the understanding with the department via speed post.