09 March 2008
Bangalore International Airport Ltd (BIAL) awrded contarct to build the airport at Banagalore to L&T. There are number of services are out sourced by L&T. Are the supporting service providers are eligible for Service tax exemption like the main contracter. Is there any notification or clarification from the Department?
It appears you are talking about the Works Contract service. The Works Contracts in respect of Airports are not subject to service tax as they are excluded from the ambit of taxable service. Please refer to clause (zzzza) of Section 65 of the Finance Act 1994 as amended.