Service Tax Heading

[Rajan Rajan]

Dear Sirs,

We have a proposal to offer below services to the respective departments. We will get payment from them. Will service tax attract on these transactions?Please indicate correct service heading and is there any Exemption to Govt. services?

SERVICES OFFERED:

1. HIRING SERVICES: The various UAV applications include disaster management, aerial photography, event monitoring, VVIP monitoring, pipeline/transmission lines inspection, forest and wildlife monitoring, precision agriculture, geo spatial imaging, Intelligence Surveillance & Reconnaissance (ISR) operations, testing platforms for air borne equipment/systems, as a target for the armed forces training. Our customers would mostly be from Defense like Indian Army, Navy, Air Force, State Police, Paramilitary forces like Border Security Force, Coast Guard.

2. OPERATION AND MAINTENANCE SERVICES: Training of the customer’s personnel would also be one of the services provided. Maintenance, Repair & Overhaul will also be done for a fixed contract period.

AI Summary

Service Tax Exemption Clarified: UAV Services for Defense May Not Qualify Under Clauses 12 and 25. A query was raised regarding the applicability of service tax on services offered to government departments, specifically focusing on UAV applications and operation and maintenance services for defense and paramilitary forces. The response clarified that service tax exemptions apply only to services specified in clauses 12 and 25, which include certain construction, repair, and maintenance services provided to government entities. If the services offered can be classified under these specific categories, an exemption may be claimed; otherwise, service tax is applicable.