CPWD Electrical Contractor

[Rajesh Jaiswal]

I am a CPWD Electrical Contractor and a registered Service Tax Holder and had paid Service Taxes , Thereafter exemption of Service Tax of (Central govt. Work) the last return . But , Is the Exemption withdrawn in the latest Service tax rule .

So in the above case can we pay service tax from 01/04/2015 or not ?

Please specify (We only perform work in CPWD , Government of India) working like Electrical Installation , Maintenance , ARMO and Electrical Construction Work like Govt. Qtr repairing and JNV Hostel Electrical Construction etc .

[Rajagopalan Ranganathan]

Sir,

According to mega exemption Notification No. 25/2012-ST dated 20.6.2012 as amended only the following services provided to Government are exempted from service tax-

Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -

(a) ³⁸[omitted]

(b) a historical monument, archeological site or remains of national importance, archeological excavation, or antiquity specified under the Ancient Monuments and Archeological Sites and Remains Act, 1958 (24 of 1958);

(c) ³⁸[omitted]

(d) canal, dam or other irrigation works;

(e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or

(f) ³⁸[omitted]

 

Item (a), (c) and (f) shall be omitted vide Not. 06/2015 - Dated 1-3-2015 w.e.f. 1st of April, 2015,

“ (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

(c) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment;

(f) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65 B of the said Act;”

Therefore in my opinion you have to pay service tax in respect of the services provided by you to CPWD.

AI Summary

Service tax exemption change: construction and maintenance services to government may become taxable after exclusion of certain structure categories. The government-construction exemption for services to government originally covered construction, installation, repair, maintenance and related works of specified structures, but an amendment omitted categories including civil structures for non-commercial use, educational/clinical/cultural structures, and residential complexes; services falling within those omitted categories (such as electrical installation, maintenance, repair or construction for CPWD) therefore cease to be exempt and are taxable under the revised rules.