Thank you for your reply. The brief facts of the case is as follows:
Mr. X and Y are sole Proprietors engaged in taking railway contracts (Laying railway lines etc) and they incorporated a private company namely XYZ infratech Private Limited for taking over their existing business by the said Private Limited.
I suggested them that since the Company undertakes works contract, Company need to have service tax registration. But they told that they are in to this business from many years till today they have not paid any service tax and the Government has also not raised any objection and they have exemption for the same.
Then I referred the Finance Act, 1944. Section 65(105)(ZZZZA)Specifically excludes contracts in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams from the purview of works contact.
Therefore I request you to Share the circular which speaks about the negative list.
CAclubindia
