service tax under reverse charge - government services

[hubert fernandes]

Hi, As per Union Budget 2016 -17, Any services provided by Govt. to business entity will be liable to service tax under RCM. Is services of electricity, telecom & water by govt. ie. BSNL, MSEB and water bill from municipality liable to service tax under reverse charge?

AI Summary

Analyzing Service Tax under Reverse Charge Mechanism for Government Services to Businesses per Union Budget 2016-17. A discussion on the applicability of service tax under reverse charge mechanism (RCM) for services provided by the government to business entities, as per the Union Budget 2016-17. The query questioned whether services like electricity, telecom, and water provided by entities such as BSNL, MSEB, and municipalities are subject to this tax. One response highlighted that services to individuals are not taxable and noted the definitions of government and local authority, mentioning potential exemptions and future amendments. Another response questioned whether the supply of electricity constitutes a service or a sale, given it is charged based on consumption.