No Service Tax payable on behalf of Service provided to Government Entities: CESTAT grants Relief

The article discusses a CESTAT decision exempting service tax on payments made to government entities for services provided. Citing precedent, CESTAT ruled that when the service recipient is a government entity, no service tax is applicable, regardless of whether the service provider pays service tax on their income. This decision clarifies that liability rests with the service provider only when the recipient isn't a government entity. The ruling aims to prevent double taxation and ensure clarity in tax obligations concerning government services.