Liability of Service Tax on construction on Railway

[PRAVIN GUPTA]

Reg.Liability of Service Tax on construction on Railway siding under COMMERCIAL OR INDUSTRIAL CONSTRUCTION SERVICES. The service tax provides exemption to 'Railway' from the levy of services tax undser the chaper COMMERCIAL OR INDSTRIAL CONSTRUCTION SERVICES A number of large industrial units are constructesd Railway siding to facilitate movement of goods from the nearest Railway station to their Godown etc located in the factory. I would like to share the experience of my colleague, to inform me whether service tax on the above activity will be exempted and the reasoning thereof. P.K.GUPTA E-mail address: [email protected]/ office phone No.0120-2410378

AI Summary

Debate on Service Tax Applicability for Industrial Railway Sidings Construction: Exemption and Contract Type Considerations A query was raised about the applicability of service tax on the construction of railway sidings by industrial units under the category of Commercial or Industrial Construction Services. The question focused on whether such constructions are exempt from service tax, given that railways are generally exempt. One respondent emphasized determining whether the construction is a works contract or labor contract and if the railway is directly involved. Another respondent requested the notification number for the exemption. The discussion highlights the complexity of determining tax liability based on the nature and purpose of the construction project.