MANU/DSTX/0054/2016

Ministry : Ministry of Finance

Department/Board : Service Tax

Circular No. : 199/09/2016-Service Tax

Date : 22.08.2016

Notification/ Circulars Referred : Notification 25/2012-Service Tax dated 20-6-2012 MANU/DSTX/0065/2012

Citing Reference:
Notification 25/2012-Service Tax dated 20-6-2012 MANU/DSTX/0065/2012  Referred

To

All Principal Chief Commissioners / Chief Commissioners of
Central Excise/Service Tax Principal Directors General/
Directors General of Goods and Service Tax/ Central Excise Intelligence/Systems/
Audit/ Tax Payer Services/Performance Management
Chief Commissioner AR CESTAT
All Principal Commissioners/Commissioners of
Central Excise/Service Tax All Principal Additional Directors
General/ Additional Directors General Audit

Madam/Sir,

Services provided to the Government, a local authority or a governmental authority with regard to water supply.

I am directed to inform that it has been reported to the Board that in some cases contractors providing the service of construction of tube wells for the Government have been considered to be liable to pay service tax.

2.0 The matter has been examined. The following exemptions are available in this regard:-

2.1 Vide Serial No. 12 (e) of notification 25/2012-Service Tax dated 20-6-2012-

"Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal".

2.2 Vide Serial No. 25(a) of notification 25/2012-Service Tax dated 20-6-2012-