Works contract service to Jawahar Navaday Vidyalaya
My client has has rendered works contract service to Jawahar Navaday Vidyalaya . He has not collected any service tax on the the bill and nothing was mentioned about service tax in the contract agreement. Now whether Jawahar Navaday Vidyalaya is a government authority and service tax payable on the Work ?
Asked 12 months ago in Service Tax from Shillong, Meghalaya
Jawahar Navaday Vidyalaya is a govt incorporated body under HRD Ministry
Thus service tax not levy due to exemption notification 25/2012
Yes, it is so in my understanding also. and the submission was made before the Commissioner (Appeals) under section 35 of the Act reproduced below.
Abstract of the report of the “Evaluation study on Navodaya Vidyalaya Samiti” is reproduced below : -
“The National Policy on Education 1986, envisaged setting up of pace setting residential schools, named as Jawahar Navodaya Vidyalayas , with an aim of providing excellence coupled with equity and social justice. Consequent to this, Navodaya Vidyalaya Samiti was registered as a Society, under the Societies Registration Act XXI of 1860. Navodaya Vidyalayas are run by the Navodaya Vidyalayas Samiti (NVS) which is an autonomous Organization of the Ministry of Human Resource Development, Department of School Education & Literacy. The Union Minister of Human Resource Development is the Chairman and the Union Minister of State for Education is its Vice-Chairman. Navodaya Vidyalayas Samiti is a Central Sector scheme fully funded by the Central Government with its headquarters at New Delhi that manages the chain of Jawahar Navodaya Vidyalayas all over the country.”
(The copy of the relevant pages of the evaluation study is enclosed herewith as Annexure-).
3. It thus appears from the above; that Navodaya Vidyalayas run by the Navodaya Vidyalayas Samiti is a 100% Government organization and is fully funded by the Central Government. Therefore, the same attracts the provisions of exemption Notification No. 25/2012-ST dated 20.06.2012 vide Clause 1(12) read with Clause 2(s) of the Notification ibid.
But it was rejected on the ground that it not a government authority.
Now pl suggest how strong would be the case if i go to Tribunal and whether any case laws or decision is there regarding this or what other documents can substantiate our claim.
Asked 12 months ago
Your case is debatable, but you have a good case.
I believe that the case of the department will be that the Navodaya Vidyalaya Samiti is an autonomous body. But the argument in your favour will be that the Chairman is the Union Minister and that it is funded by the Central Government.
M.Com., CA, LL.B
CA, Greater Mumbai
It will be very difficult to rove your point since the association is registered under the societies registration act.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP