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 sterilising of 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

Pre-construction anti-termite treatment classified as construction-related service, shaping service tax treatment and regulatory classification.
The document addresses whether anti termite treatment carried out on land before construction is a cleaning activity or part of commercial or industrial construction. Contributors split: one view treats pre construction treatment as construction related and taxable as part of new building works, while another notes that the cleaning definition applies only to services in respect of existing buildings and premises, so pre construction treatment may not qualify as cleaning. The factual status of the land and existence of premises determine classification.