Dear sir,
We are the Borewells & Tubewells contractors since 25/11/2010 out the earth drilling work in all formation of earth in Chandrapur & Gadchiroli districts of maharastra state of zilla parishads under state govt. scheme & Private work as well for the purpose of Drinking water only.
So kindly clarify to us whether the services which are rendered to excavate the borewells & Tubewells incluidng Installation of Hand Pump over said Borewells & Tubewells may be govt. or private for Drinking water only, are liable for Service Tax or otherwise please.
Thanking you
Clarification on Tax for Borewell and Tubewell Services: Service Tax or VAT May Apply Based on Contract Details. A contractor in Maharashtra sought clarification on whether services for drilling borewells and tubewells, including hand pump installation for drinking water, are subject to service tax. The response explained that if only labor is involved, it is treated accordingly. If the contract includes materials, it may be considered a turnkey works contract, requiring either service tax or VAT payment. VAT might be applicable at a 5% rate, but exemptions could apply in certain areas for drinking water projects. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
