Service tax construction activity.

[MANASH MUKHERJEE]

Sir, An assessee have provided service for civil construction works including demolishing of existing old building , internal electrification and sanitary installation for up gradation of community health centre to a 50 bedded hospital under National Rural health mission . Now I would like to know whether the service provided is a taxable service or exempted . The service was provided during Oct. 2011 to March 2015.

[Ganeshan Kalyani]

Sir, please refer notification no.25/2012 ST. Thanks.

[KASTURI SETHI]

Sh.Manash Mukherjee Ji,

The services referred by you are exempted from ST in the following way:-

1. From October, 11 to 30.6.12, exempted from Service Tax vide Board's Circular No.80/10/2004-ST dated 17.9.2004 (Para No.13.2).

2. From 1.7.12 to 1.3.15 exempted vide Notification No.25/12-ST dated 20.6.12 (effective from 1.7.12)(Serial No.12)

3. From 1.3.15 to 31.3.15 exempted vide Notification No.25/12-ST dated 20.6.12 as amended vide Notification No.9/16-ST dated 1.3.16 (Serial No.12 A).

[Ganeshan Kalyani]

Nicely explained by Sri Kasturi Sir. It enriched my knowledgebase. Thanks.

[CSSANJAY MALHOTRA]

We appreciate the views of Mr. Kasturi Sethi which is correct as per the amended Notification No. 25/2012.

[KASTURI SETHI]

Sh.CS Sanjay Malhotra Ji,

Thank you, Sir.

[MANASH MUKHERJEE]

Thanks Kasturi ji for excellent explanation.

AI Summary

Service tax exemption for public health facility construction applies for NRHM hospital upgrade during specified notified periods. Construction and allied services provided to upgrade a community health centre to a 50 bed hospital under the National Rural Health Mission were treated as exempted from Service Tax. The exemption was linked to three sequential instruments relied on by commentators: the Board circular cited at para 13.2 for the initial interval, Notification No.25/2012 ST (effective from its stated date) for the central period, and the notification as amended for the remaining March 2015 interval.