Jayesh (Service) (26 Points)
29 July 2008Dear Sirs.
Please let me know, if any Firm Purely Engaged in Business of ROAD CONSTRUCTION under a Private Real Estate Colony Development and the Firm is also having SERVICE TAX NO.. What Law Applicable in that Case for Return, Assessment and Service Tax .
Jayesh
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 30 July 2008
Comstruction of Road is an exempted Service whether it is a Construction of Public or Private Roads by any PERSON
Jayesh
(Service)
(26 Points)
Replied 30 July 2008
Thanx sir,
Please confirm whether it is ncessary to submit Service Tax Return or Not, in that case.
Jayesh
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 30 July 2008
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 30 July 2008
It is true that CBE&C has issued Circular MF(DR) No. B1/6/2005-TRU, dated 27-7-2005, indicating that the scope of maintenance and repair service has been widened w.e.f. 16.06.2005, in which service relating to maintenance or management of immovable properties is taxable. Consequent upon this modification, maintenance of roads, bridges, dams, railway buildings & electrical installations, etc., have been covered under the purview of service tax. However, the view is not binding on assessee or adjudicating authorities. Repair of roads has been specifically excluded from the definition of ‘commercial or industrial construction service’ - see section 65(25b). Thus, intention of, the Legislature is to exclude this service from tax net. In Dr. Lal Path Lab (P.) Ltd. v. CCE (2006) 5 STT 171 (CESTAT), it was held that if a service has been specifically excluded from definition of one service, it cannot be covered under another taxable service.
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 30 July 2008
The definition of 'taxable service' in relation to 'Works Contract Services' specifically excludes works contracts in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. The definition does not distinguish between public roads (government funded) and private roads (private funded) and hence it can argued that even the Private roads constructed by the Private parties should be excluded from the purview of taxability under Works Contract.
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