Service tax applicability

[Guest]

I had entered into contract with state government department.The service tax was not applicable on date of tender.Is the state gov. department liable to reimburse service tax to me?

AI Summary

Should a state department reimburse non-applicable service tax from contract tender? Review contract terms and CENVAT eligibility. A user inquired about whether a state government department should reimburse service tax that was not applicable at the time of a contract tender. Two responses were provided. One response suggested reviewing the contract terms and conditions. The other explained that typically, taxes and levies are payable as per the rates prevailing at the relevant time, and if a new service tax rate is introduced, it is customary for the customer to pay it. The respondent advised checking the contract and whether the government department is eligible for CENVAT, which might influence their willingness to pay the service tax.