Is service tax applicable

[sunil thakur]

I am working as licenced govt contractor under which i provide service to municipal corporation for different function such as nehuru jayanti ambedkar jayanti as well corporation meeting illuminating rivers for function such as ganpati navratri etc other function such as inaugurations of new govt scheme or building electrical backup for ssc exam should i pay service tax or not if i have to pay service does municipal coporation gives it or should i bear it

pl suggest me

Thank u

sunil thakur .

[KASTURI SETHI]

Thakur Ji,

Definition of 'Government' for the purpose of Service Tax has been amended w.e.f. 14.5.2015. First of all u are to examine whether Municipal Corporation falls under the definition of Govt. or not. Accordingly, decision has to be taken. If MC is not fully Govt., it is out of the definition of Govt. ST is leviable and Reverse Charge Mechanism is applicable. It is my opinion.

AI Summary

Service Tax Applicability on Contractor Services to Municipal Corporations Explored; Reverse Charge Mechanism Considered Under Amended Definition Effective May 2015. A licensed government contractor inquired about the applicability of service tax on services provided to a municipal corporation, including event management and infrastructure support. The contractor sought clarification on whether they should pay the service tax or if the municipal corporation should bear it. A respondent advised checking if the municipal corporation qualifies as a government entity under the amended definition effective from May 14, 2015. If it does not, the service tax is applicable, and the Reverse Charge Mechanism may apply.