TaxTMI 
TaxTMI 
TaxTMI 
Can we apply exemption from levy of service tax vide Notification No. 17/2005, If a construction company hired machinery, consultancey and other related services for site clearance etc as per Notification No. 17/2005-ST (Notfication and defination re produced here under) In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994, (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the site formation and clearance, excavation and earthmoving and demolition and such other similar activities, referred to in sub-clause (zzza) of clause (105) of section 65 of the Finance Act, provided to any person by any other person in the course of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams, ports or other ports, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 2. This notification shall come into force on the 16th day of June, 2005. F. No. B1/6/2005-TRU Ajay Under Secretary to the Government of India cified in Sec.65(105)(ZZZA) “site formation and clearance, excavation and earthmoving and demolition” includes, — (i) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or (ii) soil stabilization; or (iii) horizontal drilling for the passage of cables or drain pipes; or (iv) land reclamation work; or (v) contaminated top soil stripping work; or (vi) demolition and wrecking of building, structure or road, but does not include such services provided in relation to agriculture, irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies;
Applicabilty of Notification 17/2005
Venkateswararao Sunkara
Service tax exemption for site formation and related construction services applies only to specifically listed activities. Notification No. 17/2005 exempts specified site formation and clearance, excavation, earthmoving and demolition services provided in the course of construction of infrastructure (roads, airports, railways, transport terminals, bridges, tunnels, dams, ports) and lists included activities such as drilling, soil stabilization, horizontal drilling, land reclamation, contaminated top soil stripping and demolition, while excluding services related to agriculture, irrigation, watershed development and water-source works; the exemption is to be applied narrowly and cannot be stretched to services outside the notification's subject matter. (AI Summary)
