Services provided for the construction of Post office building

[CASeetharaman KC]

Would services provided for the construction of Post office building fall under " Commercial or Industrial Construction Service" given that Post office is a service of the Governement of India and not a commercial organisation?

[Baalu Radhakrishna]

No it shall not fall under 'Commercial Construction Service' for the reason POST OFFICE managed by Indian Posts, will be outside the purview of service tax, even though such POST OFFICE transacts every transaction for money consideration basing of tariff rates, the service would fall under statutory services of GOVERNMENT OF INDIA, OR STATE OR MUNICIPAL ADMIN.Hence no Service Tax on constructgion of Post Office Building

[Rama Krishana]

I agree with the view of Mr. Baalu Radkhakrishna. The construction of post office building would not be falling under the service tax net.

AI Summary

Government service exemption: construction of post office buildings not liable to service tax as commercial construction.
Construction services for a post office do not qualify as Commercial or Industrial Construction Service for service tax because a post office is a statutory government service; consequently construction of post office premises is treated as public infrastructure for a governmental function and falls outside service tax liability despite money consideration or tariffed charges.