Service tax on pay & use toilet - Service tax liability on M/s. Sulabh International Social Service Organization (SISSO) - Service Tax - 356/45/2006-

Service tax on pay use toilet - Service tax liability on M/s. Sulabh International Social Service Organization (SISSO) Letter No. 356/45/2006-TRU, dated 23-10-2006 Please refer to the investigation being carried out and the previous communication on the above subject. 02. In this regard, I am directed to state that the issue has also been examined by the Board in the instant case the activity undertaken by SISSO is limited to keep the public toilets (which are owned by municipal bodies) in clean and hygienic conditions for the users who pay nominal charges for the same. Such activities cannot be considered to be 'management, maintenance or repair of an immovable property' so as to fall under taxable service, namely, 'management, maintenance and repair' service. Further, such activity also does not fall under buildings, factory, plant machinery, etc. Also, in the instant case, while the contract is execute between SISSO and the municipal bodies, the actual beneficiary is the user who makes payment for using such toilet. 03. Therefore, Board is of view that cleaning activities of SISSO relating to "pay use toilets', owned by municipal bodies does not attract Service tax under the law for time being in force. 04. This issues with the approval of the Chairman (CBEC)