Service tax on soverign functions of govt. outsourced to private companies
Anand Reddy
(Querist) 12 July 2012
This query is : Resolved
Sir,
In the new Negative List of Services not to be taxed the first mentioned Service is
1.1. Services by the Government or local authorities: These will include such services like getting a passport, a driving license, paying municipal taxes, car registration fees, police fines and so on. What you pay for such services will not include any service tax.
But of course, there are exceptions. Service tax will still be applicable on:
- Speed or Express Post, and life insurance bought from a post office
- airport services
- government services provided to businesses. (Companies will pay it on the annual filing charges payable to the Registrar of Companies, for instance).
With reference to the above I request you to guide me on:
Whether Service Tax is payable by the Private Company if Soverign Functions of Govt. are Outsourced to the Private Company?
ram prakash
(Expert) 20 July 2012
if the services outsourced are listed in the negative list, no service tax will be payable. However, if the services outsourced are not included in the negative list and are covered by the positive activity, service tax will be payable.
