Chargeability of Service Tax by Govt on Technical Testing and Analysis service

[Guest]

Dear Sir,

Please explain whether Service Tax is charged by the Govt w.e.f 01.04.2016 on Technical Testing and Analysis Service.

Thanks & Regards.

[Ganeshan Kalyani]

Please elaborate your query a little more. Thanks.

[KASTURI SETHI]

Dear Sh.Shinde Ji,

Pl. go through notification no.22/16-ST dated 13.4.16 (Entry no.58) which amends notification no.25/12-ST (Mega Exemption Notification.)

[Rajagopalan Ranganathan]

Sir,

With effect from 1.4.2016 "any service" provided by the Government (both Central and State) or local authority is taxable under finance Act, 1994. Perusal of mega exemption Notification No. 2582012-ST dated 20.6.2012 as amended did not indicate that technical testing and analysis service provided Government or local authority is exempted. Therefore with effect from 1.4.2016 Technical Testing and Analysis Service provided by the Government is liable to service tax.

[Suryanarayana Sathineni]

Dear Friend,

I concur with the views expressed by our learned friends.

In addition to the above and for more clarity, I suggest you to pl. go through the detailed circular No. 192/2/2016-ST dated 13.04.2016 issued by CBE&C in Q&A form and also 3 or 4 Notifications issued in relation to the services provided by Government which are also dated 13.04.2016.

Best Regards

Suryanarayana

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of the experts.

AI Summary

Taxability of government-provided services: technical testing and analysis by government now falls within taxable services after exemption changes. Amendment to the exemption framework removed prior carve-outs so that, from the implementation date, any service provided by Government or local authority is taxable under the Finance Act unless explicitly exempted; the Mega Exemption Notification as amended does not exempt technical testing and analysis provided by Government, and departmental notifications and a Q&A circular issued contemporaneously clarify scope and transitional application.