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TaxTMI 
applicability of service tax on manpower outsourcing to municipal corporation
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....pplicability of service tax on manpower outsourcing to municipal corporation<br> Query (Issue) Started By: - sid chakravarthy Dated:- 19-8-2015 Last Reply Date:- 21-8-2015 Service Tax<br>Got 2 Replies<br>Service Tax<br>Sir, We are engaging labour through man power outsourcing agency for our Municipal Corporation and we are paying Service Tax.Recently some one pointed out that Notification no 25/2....
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....012 - Service Tax exempts the following taxable services from the whole of the service tax leviable under section 66B of the said Act, Service provided to Govt,a local authority or a govt authority by way of carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health,sanitation conservancy,solid waste management . kindl....
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....y clarify whether municipality is exempted from service tax for engaging the labour through man power agency. urs sincerely chakravarthy. Reply By bhart b sharma: The Reply: the 'Manpower REcruitment or Supply Agency's Services' falling under Section 65(105)(k) of Finance Act, 1994 do not provide any exemption of this sort. besides, notif 25/12-ST dated 20.06.2012 does not contain ....
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....any such exemption. as per my knowledge, contract labour employed by various government departments through a contractor are paying service tax. payment by govt. department is made after deducting service tax. Reply By Manoj Agarwal: The Reply: Dear Sir, You are correct and the exemption referred by you is covered as per Entry 25(a) of Mega Exemption Notification No. 25/2012-ST, if the conditio....
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....ns are satisfied. So, depending on the terms of the contract and your status as 'local authority', your service provider can avail 100% exemption. Regards, Manoj Agarwal, Service Tax Consultant [email protected] +91-9937041788<br> Discussion Forum - Knowledge Sharing ....