In view of the finance bill 2012 and the Ministry of financecircular no. 334 /1/ 2012 -TRU dt 16.03.2012 with the ‘Negative List’ approach for taxation of services is being introduced in the current fiscal. Under the new approach, all services except those in the ‘Negative List’ or otherwise exempted, would come into the tax net with effect from 1st July, 2012. What will be the position of works contract to be executed for Water Supply and Sewerage Board like Sewage treatment plant, drinking water supply projects, laying of sewage line etc.
Tamil Nadu Water Supply and Drainage Board, Gujarat water supply and sewage board etc.,
whether the Sewage board are covered in the Local authority as clarified by Joint commissioner vide above mentioned circular.
We shall be thankful if you could forward your opinion in respect of the service tax implications on these projects.
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As per Mega exemption notificaiton 12/2012-ST, Point No. 12(e) water & severage treatment are exemption from service tax.
YES, Tamil Nadu Water Supply and Drainage Board, Gujarat water supply and sewage board etc this are covered in local authority.