Road repairing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2012 At present what should be the category of road repairing service for a contractor, works contract or repair or maintenance service?

whether tax will be calculated at 10.3% or 4.12%

PUNEET GOYAL

PUNEET GOYAL (Expert)
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14 February 2012 Clarification as per circular no Circular No. 110/4/2009-ST. dated 23rd February, 2009
Commercial or industrial construction service [section 65(105) (zzq)] specifically excludes construction or repairs of roads. However, management, maintenance or repair provided under a contract or an agreement in relation to properties, whether immovable or not, is leviable to service tax under section 65(105) (zzg) of the Finance Act, 1994. There is no specific exemption under this service for maintenance or repair of roads etc. Reading the definitions of these two taxable services in tandem leads to the conclusion that while construction of road is not a taxable service, management, maintenance or repair of roads are in the nature of taxable services, attracting service tax.
As Per Notification No. 24/2009-Service Tax DATED 27th July, 2009
hereby exempts the taxable service, referred to in sub-clause (zzg) of clause (105) of section 65 of the Finance Act,1994, provided to any person by any other person in relation to management, maintenance or repair of roads, from the whole of the service tax leviable thereon under section 66 of the said Finance Act.

Thus it is clear from above circular and notification that finally repair and maintenance services in respect of road is exempted and no service is required to collected and deposited.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2012 sir,
Many thanks for all this notification.
As per your conclusion though this is a taxable service but exempted. Now do we require to file st-1 and then after getting registration no file nill return showing the notification no.

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PUNEET GOYAL

PUNEET GOYAL (Expert)
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16 February 2012 in case of exempted services or services not taxable at you need not to apply for registration. However, if u r providing taxable services too or applied for registration then u r required to file return regularly n u can claim exemption as per above notification

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