11 October 2009
Commercial or Industrial construction service , vide section 65(105)(zzq),specifically excludes construction or repair of roads. Therefore, whether repairing of roads can be taxed under section 65 (105) (zzg) viz., ' management, maintenance or repair service'.
11 October 2009
Maintenance or repair services are liable to service tax under section 65(105)(zzg) of the Finance Act 1994. Maintenance or repair is defined under section 65(64) of the Finance Act , 1994. Prior to 16/6/2005, such services covered maintenance or repair or servicing of any goods or equipment, excluding motor vehicles.
However, since 16/6/2005, services relating to maintenance or management of immovable property (such as roads, airports, railways, buildings, parks, electrical installations and the like) have also been covered under the purview of service tax. Such services would be taxable when provided under a contract or an agreement by any person or by a manufacturer or any person authorized by a manufacturer.
CAclubindia
