Taxability of services provided to municipal authorities, Service Tax

[sunil mehta]

Dear Sir, Is the foll: services provided to mumicipal authorities or charitable institutions by 'panadal/shamiana' contractor taxable? A)Electric generator,sound system,funiture & fixture for (i)'Flood Relief'distribution purpose (ii)organising meeting in a hall by municipal authority with representatives of political parties or press media etc in connection with flood relief operation? B)Would it be taxable if above items are given on hire to political party for its own flood relief campaign organised by them?

Posts / Replies

[Surender Gupta]

As I understood, the services described in the query are not related to any function. "Flood Relief" is an activity which is done by various agencies i.e. Municipal corporation, NGOs, Political Parties etc. The people visiting the camps / pandal or shamiana are not enjoying any function but to get some relief from disaster caused by nature. Therefore, such service is not taxable as "Pandal or Shamiana Contractor" service either for Part A or Part B of the query.