Taxability of services provided to municipal authorities

[sunil mehta]

Dear Sir, Is the foll: services provided to mumicipal authorities or charitable institutions by 'panadal/shamiana' contractor taxable? A)Electric generator,sound system,funiture & fixture for (i)'Flood Relief'distribution purpose (ii)organising meeting in a hall by municipal authority with representatives of political parties or press media etc in connection with flood relief operation? B)Would it be taxable if above items are given on hire to political party for its own flood relief campaign organised by them?

[Surender Gupta]

As I understood, the services described in the query are not related to any function. "Flood Relief" is an activity which is done by various agencies i.e. Municipal corporation, NGOs, Political Parties etc. The people visiting the camps / pandal or shamiana are not enjoying any function but to get some relief from disaster caused by nature. Therefore, such service is not taxable as "Pandal or Shamiana Contractor" service either for Part A or Part B of the query.

AI Summary

Pandal or Shamiana Contractor service not taxable when provided for disaster relief, as recipients seek relief not enjoyment. The advisory view treats Pandal or Shamiana Contractor service as inapplicable where goods and related services are supplied in the context of disaster relief activities because recipients attend to obtain relief rather than to enjoy a function; accordingly the services described, whether arranged by municipal authorities or hired out to a political party for flood relief, are not considered taxable under that service head.