Dear Members,
This is regarding Service Tax on Railwy projects. Being a contractor our nature of work is ,
1. Trenching
2.Laying of PLB/HDPE pipes
3.pulling/Blowing of Optical Fiber Cables
4. OFC Splicing
5. supply and errection of FRP Chambers.
We are doing this project for Railtel Corporation of India, through sub contract. When I raise the bill to my client (i.e. Main Contractor) with Service Tax it was rejected. The reason for rejection of the bill is Service tax is not applicable to Railway projects.
According to my konwledge Railtel Corporation of India is the subsidery unit of Indian Railways and not a infrastructure service provider.
I request you to clarify the following things.
1. Is Railtel projects or exempted from service tax?
if "yes" please give me circular / notification referece.
2. Is circular no 123/2010 is applicable to the above mentioned project?
I will be grateful to the forum members who clarifies the above mentioned doubts.
Thanking you.
