Service tax on construction water supply

[Sanjay Vasava]

Dear Sir,

So many parties supplied construction water to us.

In the case, can i paid service tax on construction water supply??

If, yes. service tax calculating on full value or not?? Any abatement ??

Please explain, How can pass this type of bill.

Thanks & Regards,

Sanjay Vasava

AI Summary

Service Tax Applies to Water Supply for Construction; Reverse Charge Mechanism Only for Non-Taxable Territories. A user inquired about the applicability of service tax on water supplied for construction purposes. The discussion revealed that service tax is indeed chargeable on the supply of water for civil construction, as it is not exempt under the relevant notifications. It was clarified that the service tax is applicable on the service portion, which may include the rental of water tanks. The reverse charge mechanism applies only if the service provider is in a non-taxable territory. The user was advised to pay the bill with service tax and take credit, as the liability lies with the service provider. Additionally, accurate billing descriptions are necessary for availing CENVAT credit.