Classification under Service Tax - Anti Termite Treatment of Land before construction

[Brijesh Verma]

Dear Experts,

Please help me in proper classification of Anti-termite treatment under Service Tax Law.

 

Such anti termite treatment is being done on land before construction starts. Whether it will come under section 65(24b) or under 65(25b).

 

(24b) 'cleaning activity' means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilisingof objects or premises, of -

       (i)  commercial or industrial buildings and premises thereof; or

       (ii)  factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof,

      but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying

(25b) ²⁰['commercial or industrial construction'] means -

       (a) construction of a new building or a civil structure or a part thereof; or

       (b) construction of pipeline or conduit; or

       (c) completion and finishing services

AI Summary

Debate on Service Tax: Is Pre-Construction Anti-Termite Treatment a 'Cleaning Activity' or 'Construction'? A discussion on the classification of anti-termite treatment under Service Tax law focused on whether such treatment, conducted before construction on commercial land, falls under 'cleaning activity' or 'commercial or industrial construction.' One participant suggested pre-construction treatment aligns with construction activities, while post-construction aligns with cleaning activities. Another participant emphasized that since no building exists at the time of treatment, it may not be taxable. The conversation also touched on the relevance of land status and project type in determining tax applicability, with consensus leaning towards non-taxability in the pre-negative list era.