Service tax on removal of Garbage to Tretment plant

[vasudevan unnikrishnan]

Work allotted by Municipal corporation is to transport the Solid waste and garbage from collection points to the treatment plant.Lorries,JCB etc are to be provided.The remuneration is paid as rent on per day for lorries and per hour for JCBs.The entire responsibility to provide vehicles from 6 am to 6pm,driver,fuel and safe transportation with fully covered sheets etc is on the contractor. Whether it can be construed as Supply of Tangible Goods and subjected to service tax.Period is both pre and post negative list era.

Thanks in advance for expert views.

unnikrishnan.v.

AI Summary

Exemption for solid waste management services extends to vehicle-based transportation to treatment plants, but earlier vehicle rentals were taxable.
For the period after 1.7.2012, solid waste management is exempt from service tax and services ordinarily provided by a municipality, including transportation and operation of lorries and JCBs integral to solid waste management, are covered by that exemption; unrelated consultancy services remain excluded. For the period prior to 1.7.2012, remuneration for vehicle rentals and equipment hire was taxable as Right to Use of Tangible Goods services.