Service tax on road works

[Gaurav Krishna]

Sir, please clarify, Service tax is applicable or not on roads maintenance and new road works.

[Himansu Sekhar]

As per Notf. no. 25/12-ST, if the roads are for use of the general Public (Stress given), then, there will be no service tax leviability. The same for repair works.

If the Roads are not for general public use , for example roads of a colony, factory etc., there will be leviability of service tax.

[KASTURI SETHI]

I support the views of Sh.Himansu Sha, an expert. We can also say exemption is available for anew construction and repair of only independent roads which are meant for all people.

[VaibhavKumar Jain]

Whether the service tax credit can be availed where the road is constructed with in the factory premises. Whether service tax is applicable where the approached road to factory is also used by common purposes.

[Himansu Sekhar]

You cannot avail any credit on the service tax paid on the Roads

[Himansu Sekhar]

If partly for factory and partly for general public, then service tax will be applicable. The credit will not be available since these are civil construction activities

AI Summary

Service tax exemption for public roads not applicable to private roads; input tax credit disallowed. Exemption applies to construction and repair of roads meant for use by the general public, while roads not for public use (for example within a colony or factory) are subject to service tax. Service tax paid on such civil construction activities does not qualify for input tax credit; partial public use does not restore credit availability.