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TMI BlogSulabh sochalaya- no service taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Sulabh sochalaya- no service tax - By: - C.A. DEV KUMAR KOTHARI - Service Tax - Dated:- 17-2-2010 - - Sulabh Sochalaya: Sulabh Sochalaya are not in nature of any commercial or residential building. They are places to provide facility of latrine, urinals and bathroom on very casual basis and free or at nominal fees. Sulabh Sochalaya may be owned by a municipality or other institution. They m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be operated by owner or through other agency. Investigation: There is ongoing investigation against M/s. Sulabh International Social Service Organization (SISSO) for service tax liability. Similarly in other cases of Sulabh Sochalaya also there may be ongoing investigation or issuance of SCN. Circular about SISSO: Vide Letter No. 356/45/2006-TRU, dated 23-10-2006 the clarification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been issued in this regard. The text of the circular with highlights is reproduced below: 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 ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso, 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 appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oval of the Chairman (CBEC). From the above circular it is clear that an investigation is already on in relation to such services which are for convenience of public at large and are really meant to serve public purposes. The following services appears to have been examined by the Board: 'management, maintenance or repair of an immovable property' cleaning activities Furthermore the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard has also taken view that sulabh sochalaya does not fall under services in relation to buildings, factory, plant machinery, etc. A broader exemption is desirable: It is desirable that a broader circular should be issued to exempt all such services which are carried with a view to provide public convenience free of cost or at nominal costs. For example drinking water supply in water huts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d maintenance thereof, cleaning and maintenance of public parks and other places , pay and use facilities for public for bathrooms, latrines and toilets, dharmshala, These services are generally carried out by government agencies, non government organizations, public charitable institutions etc. Such services generally add to public utilities. In fact the burden of government is reduced as certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in work is done by such institutions solely for public convenience. Therefore, such activities should not be burdened with taxes if carried out by any NGO/ NPO etc. and not only in case of SISSO. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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