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

[Guest]

From the given details, the services rendered to you could be covered under 'Cleaning services' effective from 16.6.05.

[Surender Gupta]

For determination of service tax liability correctly, you are advised to ensure that this activity is falling within the purview of Central Excise or not.

AI Summary

Effluent treatment services classification as taxable cleaning services may attract service tax; verify central excise overlap. Whether charges for onsite cleaning and chemical filtration of process effluent returned for reuse constitute taxable cleaning services as notified with effect from 16.6.2005, and whether the activity falls within the domain of central excise thus affecting service tax liability; no specific exemption or special environmental concession is indicated in the record.