works contract service tax

[abdul gafoor]

Dear Sir, we are under going two educational building construction for a charity organanisation registerd under 12A.

One is Special need School and another one is a Law college( recognised by unversity).

Is service tax is applicable on this works contract.

pls help.

[Ganeshan Kalyani]

The extract of mega exemption notification is reproduced from your below:

13. Services provided by way ofconstruction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

(a) ....

(b) ....

(ba) ...

(bb) .....

(c) a building owned by an entity registered under section 12 AA of the Income tax Act, 1961(43 of 1961)and meant predominantly for religious use by general public;

(d) .....

(e) .....

[KASTURI SETHI]

Pl. go through Serial No.9 of Notification No.25/12-ST dated 20.6.12 as amended vide Notification No.6/14-ST dated 11.7.14. Auxiliary Educational Services stand omitted. Construction of educational building does not find place in the amended notification. For education purpose services have been specifically mentioned. The word, 'Auxiliary' was creating problem for Govt. Rather, it was being misused. Section 12 AA of the Income Tax Act has different purpose.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Sri Kasthuri Sethi.

[Mr Rao]

Dear sir,

I also endorse the views of Kasturi Sethi.

AI Summary

Service tax exemption scope for construction of educational buildings denied, as exemption covers buildings for predominant religious public use. Contributors concluded that exemptions for construction-related services apply to buildings owned by entities registered under 12AA when meant predominantly for religious public use, and that construction of educational buildings is not covered; amendments removed references to auxiliary educational services and 12A registration does not equate to the 12AA-based exemption, leaving service tax applicability to educational building works contracts unresolved without formal advisory.