Service tax on digging, levelling, filling, fixing etc. (construction of road)

[sunil mehta]

A small contractor gets the foll: work from municipal corporation: 1)Digging out existing materials (cement,kapchi. etc.) from existing pavement(footpath) 2)Levelling of earth work, 3)Filling of sand ,kapchi, ets to flatten the suraface, 4)Fixing the ready made purchased pavement blocks on footpath , (note:contractor buys pavement blocks from the market ) As per the work order rate for pre-fixing ready block is based on square mtr. basis (digging out old earth work,surfacing etc) , & rate for ready made fixing charges are quoted separetely (pavement block + fixing chgs.) Query :a) It is not construction of roads (road is exempted) b)will it fall under ' construction of civil structures' ? (as per definition ) c)Pl. suggest suitable service under which it falls? d)when rates quoted by mun. corporation for pre-fitting and actual pavemnt block price are different ,how to claim abatement for actual pavement block purchased from the market?

AI Summary

Contractor Seeks Clarity on Tax Exemption for Footpath Work, Queries Classification Under 'Construction of Civil Structures' A contractor engaged by a municipal corporation is tasked with various activities such as digging, leveling, filling, and fixing pavement blocks on footpaths. The contractor queries whether these activities fall under the 'construction of civil structures' for service tax purposes, given that road construction is exempt. The rates for pre-fixing and actual pavement block prices are quoted separately, raising questions about claiming abatements. One respondent argues that footpaths, used by pedestrians, should not be classified as roads, while another believes the activities should be exempt as they pertain to road construction.