Services provided by Government or Local authority - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 6 Services provided by Government or Local authority Scope of Reverse Charge Service - ( Notification No. 30/2012- Service Tax, Part (II) Table Sl. No.6 ) From 1.7.2012 to 31.3.2016 In respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 Taxable services provided or agreed to be provided by Government or local authority by way of support services excluding, - (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 , to any business entity located in the taxable territory; [ Note:- As per the amendment by notification no. 07/2015 - Service Tax w.e.f. 01/04/2015 , words by way of support services has been omitted from the enabling paragraph. But the same change had not been done in table given in notification. It was done later i.e. w.e.f. 1.4.2016] From 1.4.2016 - Not. 18/2016 - Dated 1-3-2016 In respect of services provided or agreed to be provided by Government or local authority excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 Taxable services provided or agreed to be provided by Government or local authority excluding, - (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 , to any business entity located in the taxable territory; Liability on:- Service Provider Service Recipient % of tax Nil 100% Meanings and Definitions: As per Section 65B (49) - Support services means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis. From 1.7.2012 to 29.1.2014 (s) governmental authority means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution ; From 30.1.2014 (s) governmental authority means an authority or a board or any other body; (i) set up by an Act of Parliament or a State Legislature; or (ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution ] 65B (31) local authority means- (a) a Panchayat as referred to in clause (d) of article 243 of the Constitution ; (b) a Municipality as referred to in clause (e) of article 243P of the Constitution ; (c) a Municipal Committee and a District Board, legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (41 of 2006.) (e) a regional council or a district council constituted under the Sixth Schedule to the Constitution ; (f) a development board constituted under article 371 of the Constitution ; or (g) a regional council constituted under article 371A of the Constitution ; From 14.5.2015 65B (26A) Government means the Departments of the Central Government, a State Government and its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder.