Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

Change in Definition of Governmental Authority

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 1314
  • Subscribe to this entry
  • Print
  • Report this post

Notification No. 02/2014-ST dated January 30, 2014 (the Notification) has amended the definition of Governmental Authority as provided under clause (s) of Para 2 of the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 as under:

(s) “Governmental authority” means an authority or a board or any other body;

(i)  set up by an Act of Parliament or aState Legislatureor

(ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution.

Earlier, the “Governmental authority” was defined as under:

“Governmental authority’’ means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipalityunder article 243W  of the Constitution.

This change is effective from 30th January, 2014.

Editor's Comments
The issue is that can we interpret the amendment as retrospective in nature as the intention of the government right from the date when service tax was introduced was never to bring into the domain tax on work done for such entities. The construction work for such entities has always enjoyed exemption from 2004 till the commencement of negative list regime. Although we do expect that after the newly elected government comes into place the amendment may very well be made retrospective in nature even by bringing a separate notification for the same.

Despite all, the change is indeed a welcome one and shall give relief to several entities.

However one needs to be very careful before implementing the same.


Rate this blog entry:
Trackback URL for this blog entry.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 18 September 2019

Like us on facebook

Twitter Feed

ConsultC Please find the latest presentation given to select gathering of real estate developers at Kolkata on West Bengal H… https://t.co/Uizrcczy13
ConsultC Apart from the intricacies of the Forms and constant regulatory changes, GST has a lot of other aspects. We had an… https://t.co/YB1asAgU2s
ConsultC Second Edition of our book released with latest amendments upto September, 2018 https://t.co/eOwUcNZife


304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
+91 - 079 - 40032950
This email address is being protected from spambots. You need JavaScript enabled to view it.

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.