Applicability of Service of sewer line under works contract

[Ashok Goyal]

Whether service of sewer line is taxable under works contract or any exemption is their under any head for pipe line etc. I am interested in particularly sewer line work civil work.

[Rama Krishana]

Where the nature of activity is in the nature of works contract the same is falling withing the clause zzzza. But is such an activity is not for a commercial or industrial purpose the same is out of purview of service tax e.g. for municipal corporation or local development authority. On the other side if such an activity is part of residential complex, the same shall be subject to service tax.

AI Summary

Works contract classification determines service tax on sewer line works; public authority projects may be excluded, residential projects taxable. Sewer line installation is classifiable as a works contract service under clause zzzza and ordinarily attracts service tax; however, where the work is performed for a non-commercial public authority (such as a municipal corporation or local development authority) it falls outside service tax coverage, while sewer works forming part of a residential complex are taxable.