The Karnataka Authority for Advance Ruling ( KAAR ) has ruled that the work contracts service for construction of plumbing stations and reservoirs is not covered under exemption notification no. 12/ 2017 Central Tax.
The applicant KBL ,SPML Joint venture who filed the application for advance ruling regarding the alleged pure services of operation & maintenance of pumping station and reservoirs.
The applicant has sought an advance ruling in respect of the question whether the transaction undertaken by the applicant is covered under exemption notification No. 12/ 2017 Central Tax.
K J Kammath authorized representative appeared on behalf of the applicant who submitted that the applicant was awarded a contract by BWSSB for execution of civil and electromechanical works for plumbing stations and reservoirs as well as operation and maintenance for a period of years
It was observed by the authority that the contracts cover civil works where the supply of goods is also involved and thus such service falls under work contract service and hence it cannot be a pure service.
After analyzing the submission the two member bench of Authority of Advance Ruling comprising M P Ravi prasad ( Member ) and Kiran Reddy T ( Member ) held that the work contracts service for construction of plumbing stations and reservoirs is not covered under exemption notification no. 12/ 2017 Central Tax.
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