https://www.taxtmi.com/forum/issue?id=116362 Liability for service tax under reverse charge hinges on whether the Metropolitan Development Authority qualifies as a "governmental authority" or "local authority". Notification No.25/12 ST, as amended, exempts construction services to governmental authorities defined to include government established bodies with ninety percent or more participation that carry out municipal functions under Article 243W. The Finance Act sets out a separate definition of local authority; PAN alone is insufficient. CBEC guidance excludes many statutory bodies from Government or local authority status. If the MDA does not meet the municipal function and participation criteria, it is prima facie liable for service tax on development charges and specified services under RCM. en-us Thu, 04 Jun 2020 20:13:11 +0530 Thu, 23 Jan 2025 15:54:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=116362 Liability for service tax under reverse charge hinges on whether the Metropolitan Development Authority qualifies as a "governmental authority" or "local authority". Notification No.25/12 ST, as amended, exempts construction services to governmental authorities defined to include government established bodies with ninety percent or more participation that carry out municipal functions under Article 243W. The Finance Act sets out a separate definition of local authority; PAN alone is insufficient. CBEC guidance excludes many statutory bodies from Government or local authority status. If the MDA does not meet the municipal function and participation criteria, it is prima facie liable for service tax on development charges and specified services under RCM. Discussion-Forum Service Tax Thu, 04 Jun 2020 20:13:11 +0530 https://www.taxtmi.com/forum/issue?id=116362