Service tax

Medha Bhattacharyya (Querist) 18 October 2011 This query is : Resolved
A Contractor who is involving for sinking of submersible pump for supply of water for rural people under SAJAL DHARA Scheme, in which Central Government Give 75% of the total expenditure and remaining portion given by the beneficiary of nine or ten families, who are get the benefit of such drinking water.The entire scheme was conducted by Zila Parishad.The scheme is non commercial, non profit base.
My question is whether the contractor is exempted from service tax? Please refer the Notification Number/Case Laws?If Any.

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soumitra basu (Expert) 07 November 2011
The contract is subject to the Service Tax

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