Well Digging Service Tax

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..... Well Digging Service Tax
Query (Issue) Started By: - george thomas Dated:- 20-10-2015 Last Reply Date:- 22-10-2015 Service Tax
Got 4 Replies
Service Tax
Dear Sir Our Company is given contract to one person for digging 4 well .Plz let me know service tax is applicable for the remuneration payable to contractor. Reply By MARIAPPAN GOVINDARAJAN: The Reply: If his turnover is less than .....

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..... ₹ 10 lakhs then he is exempted from levy of service tax. Otherwise he is to raise service tax along with his bill. Reply By Ganeshan Kalyani: The Reply: The said service of digging of well is not exempted in service tax law and hence it is taxable after the revenue to the contractor crosses beyond the exemption limit. Reply By Mahir S: The Reply: Yes sir, the views posted above are legal .....

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..... and correct. Reply By KASTURI SETHI: The Reply: Digging well or construction of well and its repair, maintenance & renovation is covered under Mega Exemption Notification No.25/12-ST dated 20.6.2012 as amended vide Notification No.06/2015-ST dated 1.3.2015 effective from 1.4.2015 [at serial no.12 (d) Canal, Dam or other irrigation works]. Tube-wells, Tanks etc are also covered under , "Oth .....

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..... er irrigation works". Thus exemption from Service Tax is available only if this service is provided to Government, a local authority or a Govt. authority for the purpose of irrigation. Otherwise the activity of digging wells or construction of Wells, Tube-well etc. is liable to Service Tax.
Discussion Forum - Knowledge Sharing .....

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