𝗖𝗘𝗦𝗧𝗔𝗧 𝗛𝘆𝗱𝗲𝗿𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗪𝗼𝗿𝗸𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 (𝗪𝗖𝗦) 𝗳𝗼𝗿 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝗶𝗲𝘀 📢 The Tribunal held: "APMSIDC, being a governmental authority with no profit motive, is not required to pay service tax on works contract services under reverse charge."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: The Managing Director, APMSIDC 𝗜𝘀𝘀𝘂𝗲: Whether APMSIDC, as a governmental authority, is liable to pay service tax on WCS under reverse charge?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant received works contract services (WCS) from M/s Satya Sai Constructions, for which the department demanded service tax under reverse charge, citing inapplicability of exemptions for contracts post-01.03.2015.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled: APMSIDC is not a business entity with profit motives and qualifies as a governmental authority under Notification No. 25/2012-ST. Notification No. 30/2012-ST on reverse charge does not apply to non-business entities like APMSIDC. The appeal was allowed, exempting APMSIDC from service tax on the WCS provided by M/s Satya Sai Constructions.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: The Managing Director, APMSIDC vs. Commissioner of Central Tax, Guntur 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 30314 of 2023 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 02 November 2023 📜 This ruling confirms that governmental authorities without profit motives are not subject to service tax on works contract services under reverse charge.