CAN ROAD MAKING FOR LOCAL BODIES OR GOVERMENT IS EXEMPETED FOR SERVICE TAX

[INDRA MOHAN SAXENA]

SIR, I WANT TO KNOW THAT ROAD MAKING FOR GOVERMENT OR LOCAL BODIES IS EXEMPETD IN SERVICE TAX .AND I WILL CLAIM SERVICE TAX OR NOT

[Guest]

Making of road for use by general public is exempt from service tax under Mega Exemption Notification. No need to charge ST.

[Ravi Kumar Somani]

Dear Mr. Indra Mohan,

As per entry 13 of mega exemption notification, construction of road is exempt from service tax even if it is provided to other than government. However, it is important to note that such road must for the use of general public.

[Guest]

Dear Indra Mohan

Please see entry no. 13 of attached notification issued on 20/06/2012

Please follow link:

https://www.taxtmi.com/notifications?id=24941

CA. Anoop Tiwari

8826894581

AI Summary

Service tax exemption for road construction: construction of roads for general public use is exempt under the mega exemption notification. Construction of roads intended for use by the general public is exempt from service tax under the mega exemption notification; therefore service providers need not levy service tax. This exemption applies even where the recipient is not a government body, provided the road is for general public use.