Construction of Road works [Service Tax matter]
Paras Kariya
(Querist) 23 March 2010
This query is : Resolved
Dear friends,
(1) Pls. give me guidance about, if anybody receive summons under the provisions of Section 14 of the Central Excise Act, 1944 made applicable to service tax matter by virtue of section 83 of the Finance Act, 1994 what we do.
(2) Second is that vide circular No. 110/04/2009-ST, dated 23.02.09,declare by the compenant authority that commercial or industrial construction service [Section 65(105)(zzq) specifically excludeds construction of roads. In this, there is no specific exemption under this service for maintenance or repair of roads, etc. Reading the defination of these two taxables services in tandem leads to the conclusion that while construction of road is not a taxable services, attracting service tax.
In this regards the technical literature on the subject indicate that the activitiy can be categorized as follow:-
(A) Maintanance or reparis activities:
I. Resurfacing
II. Renovation
III. Strengthening
IV. Relaying
V Filling of potholes
(B) Construction Activities:
I. laying of a new road
II. widening of narrowed road to broader road (Such as conversion of a two lane road to a four lane road)
III. Chaning road surface (graveled road to metalled road/mettaled road to blacktopped/blacktopped to concrete etc.)
In this regards, which exempted vide notification dated 27.07.09.
My question regarding second, is that if the contractor is Government contractor and they works only government department like N. H., Panchayat, Road & Buillding, etc. then they will applicable in this category because in my knowledge every government work for the people are exempted from the Service Tax. If I am wrong then pls. give me right direction in this regards.
Thanks
With regards
Paras H. Kariya
Law Student
Junagadh
tarun goyal
(Expert) 24 March 2010
dear, to your Ist query answer is that appear before the authority and answer their queries. nothing to fear. to second query, answer is that under service tax there is no distinction between private service provider and government service provider. the only thing is that the service provided should be taxable service under the Finance Act. thirdly, construction of roads in th course of commercial or industrial construction service is exempted.
