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

Services for Flood Relief by 'Pandal/Shamiana' Contractors Not Taxable, Even for Political Party Campaigns A query was raised regarding the taxability of services provided by a 'pandal/shamiana' contractor to municipal authorities or charitable institutions, specifically for flood relief activities. The services in question included the provision of electric generators, sound systems, and furniture. The inquiry also asked if these services would be taxable if hired by a political party for its flood relief campaign. The response clarified that since flood relief is not a function but a disaster relief activity, such services are not taxable under 'Pandal or Shamiana Contractor' service for either scenario.