Service tax applicable or not

[Anil Gupta]

Dear sir,

               We are the Borewells & Tubewells contractors since 25/11/1965 out the earth drilling work in all formation of earth in Allahabad and surrouding region districts of Uttar Pradesh state  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 & submersible pump over said Borewells & Tubewells may be govt. or private for Drinking water only, are liable for Service Tax or otherwise please.

Thanking you

AI Summary

Service tax applicability for borewell and tubewell services: exempt for public drinking-water supply, taxable for commercial use.
Services for excavation of borewells and tubewells and installation of hand pumps or submersible pumps that supply drinking water for public utility purposes are not subject to service tax, whereas equivalent services provided for commercial or industrial use fall outside that exemption and attract service tax; queries concern the specific exemption notification and whether tax liability rests on the individual service provider or the service receiver.