Digging of ringwell

[ramkishore gupta]

Respected All

I would like to know weather service tax is applicable on the amount paid to me for digging and making of a new well paid by some private business entity for the welfare of public

AI Summary

Service Tax Applicable on Well Construction for Private Entities Post-July 2012; No Exemption or Abatement Available. A query was raised regarding the applicability of service tax on payments received for digging and constructing a well for a private business entity. It was clarified that such activities fall under 'Site Formation and Clearance, Excavation, Earth moving and Demolition Services' but were not subject to service tax prior to July 1, 2012, due to an exclusion clause. Post-July 1, 2012, these services are exempt from service tax only if provided to government entities for irrigation. Since the service was for a private entity and not for irrigation, it is not exempt. Additionally, no abatement is available for this service.