Service tax on Construction activity.

[MANASH MUKHERJEE]

Dear Sir,

Is service tax applicable on the construction of hospital or it is exempted .

[Ganeshan Kalyani]

Service tax is applicable if the service of construction is provided to a person other than Government or Government Authority or Local Authority.

[DR.MARIAPPAN GOVINDARAJAN]

In my view, service tax is applicable.

[KASTURI SETHI]

Service Tax is applicable on the construction of hospital irrespective of the situation whether hospital is being constructed by Govt. or by a person other than Govt. Notification No.25/12-ST dated 20.6.12 has been pruned vide Notification No.6/15-ST dated 1.3.15 (effective from 1.4.15).

AI Summary

Service tax applicability on hospital construction: taxable when provided to non-government recipients; exemptions have been curtailed.
Hospital construction services are generally taxable as service tax where the recipient is other than the Government, Government authority, or Local authority; one view states taxability applies irrespective of whether the builder is government or private. Recent amendments have narrowed prior exemptions for construction services, so hospital construction should be treated as taxable unless a specific statutory exemption for the recipient or contract is clearly available.