ST on services rendered by 'Govt' - opening Pandora's Box?

After deletion of support service from Negative List of Services appearing in Sec.66D (a) (iv) and definition of support service from interpretation clause 65B (49) the argument of sovereign right will not hold good. Board Circular, Education Guide, case laws are relevant as long as the term support service was in place. Now the correct identification revolves around whether any service has been received from the Government or Local Authority. If it is a payment of tax, the activity of Government or Local Authority is only a collection of tax which constitutes merely a transaction in money and the same is excluded from the scope of service as per Clause 44 (a) (iii) of Sec.65B of FA. When the Fee is as a charge for an activity done by Government or Local Authority it is a service. However the fee taken in any Court or tribunal established under any law for the time being in force is not taxable as they are covered in Negative List in terms of Sec. 65B (44) (c)

govindan_mani govindan_mani 13/04/2016