The term ‘local authority’ is not defined in the notification ...
Service Tax
January 20, 2024
The term ‘local authority’ is not defined in the notification and hence the commonsensical meaning of the term should be applied. A perusal of the functions of the NOIDA as per section 6 of the Act reproduced above makes it abundantly clear that it falls in the definition of ‘local authority’. Therefore, neither the NOIDA nor the PWD need to fall under the definition of ‘Government authority’ because NOIDA is a ‘local authority’ while PWD is a part of the Government itself. The services of street lighting and other maintenance work carried out by the assessee to these two organizations, also cannot by any stretch of imagination, be called predominantly meant for commerce or business. - AT
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