Service Tax on Construction of Road

[ABHISHEK Kumar]

Our client is engaged of Construction of PWD Road. Now department has issued notice citing tds deducted u/s 194 of income tax act during fy 2015-june 2017. Since construction of Road service is exempt under Notification No. 25/2012, what would be other points we could include in our reply to department.

[KASTURI SETHI]

SH.ABHISHEK K Ji,

Q. What would be other points we could include in our reply to department. ?

Ans. Either ask questions specifically or post major contents (summary) of the notice issued by the department.

AI Summary

Service tax exemption for road construction challenged after TDS notice; seek specifics or a notice summary to respond. A departmental notice invoking Tax Deducted at Source under section 194 was issued to a contractor for work on a PWD road covering FY 2015-June 2017, while the contractor asserts the construction-of-road service is exempt under Notification No. 25/2012. The recommended procedural reply is to ask the department to specify the factual and legal basis of the notice or to provide a summary/extract of the notice so that targeted legal points can be identified and addressed.