Service rendered to Cenrtal Government owned comany,bank,financial institution & undertakings should be declared non-taxable service under the Service tax Law. Such tax go to govt tax account or remains with such government entities, in terms of money will not matter the government.Quite sure, by doing this the sevice tax comliance and managment expenses as well as time of such entity will reduce a lot and most importantly the service provider who have both input & output taxable service will not be able to reduce their Service tax payable liability to the extent of such service tax realised from government entity.
