TaxTMI 
TaxTMI 
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
Digging of ringwell
06 Jan 2017 
3 Replies 
907 Views Asked by
Exemption for site formation services limited to irrigation work for government; private contracts remain taxable and no abatement.
Digging and construction of wells are classed as Site Formation and Clearance, Excavation, Earth Moving and Demolition Services. Post-amendment exemption applies only when the service is provided to a government or local authority for irrigation; services to private entities not for irrigation are not exempt. No abatement is available where the contractor also supplies materials for the well construction. (AI Summary)
Digging and construction of wells are classed as Site Formation and Clearance, Excavation, Earth Moving and Demolition Services. Post-amendment exemption applies only when the service is provided to a government or local authority for irrigation; services to private entities not for irrigation are not exempt. No abatement is available where the contractor also supplies materials for the well construction. (AI Summary)