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Serv tax on manpower supply for road

13 February 2012

Hello friends

At present service tax on construction and repair of service is not taxable. as it has been specifically excluded from the definitions of "Work contract Service" and "Commercial and Industrial Construction". Also N/N 24/2009 exempts management, maintenance or repair regarding road.

Now my query is that if a contractor supplies manpower for construction or repair of the road, it will be classifiable under category " Manpower recruitment or supply service". So will service tax be payable or exempted in this case.

Please reply soon with your appropriate suggestions.

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2 Replies

Rakshit (practising) (338 Points)
Replied 13 February 2012

Your query is not very specific. It is not clear whether the contract is simply for supply of manpower or for doing maintenance or construction of roads. If the contract is for supply of manpower and the bill is raised against the number of labour supplied then that service will be classified under mapower recruitment or supply service and will be liable to service tax but if the contract is for maintenace of roads or construction of roads then the same wil be classifiable under their respective categories where the same is exempted either in the defintion itself or by way of a notification.