Service tax on run-way excavation work at airport

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2013 Sir,
Please tell me ,
we are a Pvt Ltd company and we got a contract from L & T of Run way excavation for domestic airport. We have engaged our machineries along with labour etc for the work.

SO MY QUERY IS 1. Whether service tax will be charged on any construction work we do.

2. Whether service tax will be charged on machineries we have engaged and also on labour

3. since this is a airport work is this services are exempted.

please guide
thanks

CA Suresh Jain

CA Suresh Jain (Expert)
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22 September 2013 You have not specified whether the excavation work is related to original work. Assuming hat it relates to original work please note my answers :-

1. Whether service tax will be charged on any construction work we do.
Answer : The original work by a contractor pertaining to airport is exempted
2. Whether service tax will be charged on machineries we have engaged and also on labour - the service tax is leviable on the value of service which is normally the amount billed or billable
3. since this is a airport work is this services are exempted- the service is an exempted service, the service provided by sub contractor is also exempted

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case