Exemption to sub contractor from service tax

[Sudhir Kumar]

I am a sub contractor and were engaged to provide earth work to the main contractor who were engaged in road construction work for the government. As the road construction work is exempted from the liability of service tax. Will the work provided to the main contractor as earth work be also exempted from service tax. I have received a notice for the period 2016-17 by the department to pay the amount of service tax on the gross amount received from earth work.

AI Summary

Subcontractor's Earthwork for Government Road Project May Be Exempt from Service Tax Under 'Works Contract Service' Criteria. A subcontractor engaged in providing earthwork for a main contractor involved in government road construction queried whether their services are exempt from service tax, as the main contractor's work is exempt. Responses varied: one suggested exemption depends on whether the service is classified under 'Works Contract Service,' while another highlighted that earthwork is part of such services. A case law was cited supporting that earthwork for roads is included under construction services, potentially qualifying for exemption. The consensus leaned towards exemption if the subcontractor's services align with 'Works Contract Service' criteria.