applicability of service tax on manpower outsourcing to municipal corporation

[sid chakravarthy]

Dear Sir,

We are engaging or labour through man power outsourcing agency for our Municipal Corporation which is a Local Authority for the maintenance of sanitation,street lights,parks,water supply,security personnel and computer operators etc.

In this connection I would like to know whether these services are exempted from the levy of service tax under the Act.

yours sincerely

Chakravarthy s.n.

AI Summary

Debate on Service Tax Applicability for Manpower Outsourcing to Municipal Corporations: Exemptions and Definitions Explored A discussion forum addressed the applicability of service tax on manpower outsourcing services provided to a municipal corporation. The initial query sought clarification on whether these services are exempt from service tax. One response highlighted the mega exemption notification No. 25/2012-ST, noting that only services related to sanitation and water supply are exempt, while others are taxable if exceeding the exemption limit. Another reply emphasized that service tax is applicable since the services are not sovereign functions. A third response discussed changes in the definition of 'Government,' questioning whether a municipal corporation qualifies as a governmental authority under the Finance Act.