Taxability of 'effluent treatment services'

[Guest]

our unit produces was water or effluent water, in small quantities of 2000 to 4000 lit per month, a local firm comes and uses some chemicals and filters to clean up the effluent, the water is then recycled back into our factory for reuse, the party charges us on a per litre basis, for 'effluent treatment services' is this service 'service taxable' if yes under what heading, is it extempt from tax if so under what section, considering this activity to be enviornment friendly are there any special clauses available

AI Summary

Are Effluent Treatment Services Taxed? Exploring Service Tax on Water Cleaning and Recycling Under 'Cleaning Services' A discussion on the taxability of effluent treatment services was initiated, questioning whether charges for cleaning and recycling water are subject to service tax. The first response suggested that such services might fall under 'Cleaning services' as of June 16, 2005. The second response advised verifying if the activity is subject to Central Excise to determine the correct service tax liability. The discussion highlights the need for clarity on tax obligations for environmentally friendly services.