Service tax applicability
HARIPRASAD
(Querist) 12 May 2017
This query is : Resolved
Dear sir,
We runs works contract business (constructions).we were called Tenders BY ONE of the GOVT COMPANY - (1) ANDHRA PRADESH STATE HOUSING CORPORATION FOR Improvements/Modernaization of outdoor stadium at kurnool which comes in Andhra pradesh state.
AND
(2) ANDHRA PRADESH STATE POLICE HOUSING CORPORATION FOR Construction of Teaching Veterinary clinical complex at College of Veterinary science Poddutur Kadapa.Andhra pradesh state respectively.
As per the 25/2012 dated 20.06.2012 the above works will fall under this notification under clause of 12.
we had shown this turnover in 2015-2016 due to our method of accounting which we are following.
Now, Service tax authority wants to pinch us WITH imposing tax on these two projects SAYING THAT, THESE TWO ARE NOT EXEMPTED PROJECTS HENCE YOU ARE LIABLE TO PAY ACCORDINGLY AT@4.944%.
OTHER HAND WE ARE TRYING TO PROVE THAT, THIS IS PURELY STATE GOVT AND NON COMMERCIAL PROJECT WHICH WERE ALLOTTED BY ABOVE THE ABOVE SAID CORPORATIONS AND PURELY CONTROLLED BY STATE GOVTS.
BUT, ON THE OTHER HAND WE ARE IN CONVERSATION WITH THESE TWO DEPARTMENTS TO GET HOLD OF THE EXEMPTED TURNOVER DOCUMENTS PROOFS AND TYPE OF ESTABLISHMENTS DOCUMENT PROOFS TO SUBMIT TO SERVICE TAX AUTHORITY TO THEIR LEVEL OF SATISFACTORY.
THE PROCESS SEEMS TO TAKE LONG TIME TO GET RID OF THIS. IF ANY ONE COULD ADVICE US WHETHER THE ABOVE MENTIONED PROJECTS EXEMPTED OR NOT?
IF SO PROVIDE ME THE DOCUMENTARY LINK. THANK YOU.
krishna mohan
(Expert) 19 May 2017
ST exemption unless the authority to whom you are executing giving you written authority and accepted you have abide by the tax liability as applicable under WCT. But you can always offset against input credit with output credit. Better consult a legal expert practicing on service tax matters or CA for right advise after perusal of exemption you have been assuming.
