CONSTRUCTION OF WOODEN BRIDGE AT TEA BAGAN

[ramkishore gupta]

Please update on service Tax impact on wooden bridge constructed for tea bagan for the welfare of the common public , amount paid by tea bagan authority to the contractor

[KASTURI SETHI]

Wooden bridge does not qualify the term, 'Construction'. Moreover, the word, "horticulture" has been included in the definition of 'Agriculture' in the draft GST which is not Act so far.Thus it is crystal clear that no exemption is available to horticulture in the present definition of 'Agriculture' under Service Tax law.

AI Summary

Construction classification: wooden bridge for tea garden not treated as construction, so no service tax exemption. A wooden bridge built by a tea garden authority for public welfare is not considered construction under current service tax law; the draft GST's inclusion of horticulture in agriculture is not operative, so horticulture-based exemptions do not apply to such payments to the contractor.