Applicability of Service tax

[ASHOK CHOUDHARY]

Fow New Railway line project of Govt. of Indida :- 1.Is Supply and fixing of concrete pillars for the new Railway is liable for the Sercice Tax 2.Collection of sales deed from owner of land and valaution for the proposes new railway line. 3. Service related to distribution of compensation to land owner like opening bank a/c and deposit the money and furnishing the details about the compensation to Gove, and other authority. 3.service provided to follow up with distt. and revenue and forest Official for preparation and acquisition of land for railway

[Rama Krishana]

Works contract in respect of railway is excluded from the purview of service tax. But other categories of of services remains liable even if in relation to railways. Therefore, you need to determine that whether the services in question are in the nature of works contract or not, you would get the answer. If the service are in the nature of works contract and liaison with other departments is because of such works contract, the same can not be subject to service tax. But, if it an independent activity, the same shall be subject to service tax.

AI Summary

Works contract exclusion limits service tax on railway construction, while independent facilitation and liaison services remain taxable. Supply and installation of concrete pillars for a government railway project must be classified to determine whether they constitute a works contract excluded from service tax; by contrast, independent services such as collection of sale deeds, land valuation, compensation distribution facilitation, and liaison with officials are taxable unless they are integral to an excluded works contract.