1)A service provider has got work from municipal corporation to supply anf fix 'road divider' in the middle of the road.
2)At the end of that road( at junction of four roads) he has to construct 'traffic island'.
3)He has also to supply and fix 'paver blocks' on one of the municipal owned existing road The whole work is inclusive of material and labour.
Query::-whether 'road divider' comes within the definition of road and thus exempted from stax on ' industrial or commercial construction services ?
b)whether const. of 'traffic island' in the middle of junction of road is taxable under stax?
c)whether supplying and fixing 'paver blocks ' on road side amounts to const. of road and thus exempted?
Service tax exemption applies to road construction and traffic islands, but excise duty applies to off-site paver blocks. A service provider engaged by a municipal corporation to construct a road divider, traffic island, and supply paver blocks inquires about service tax applicability. The first response clarifies that works contracts for municipal projects not related to commerce or industry may not fall under taxable services. The second response states that road construction is exempt from service tax, including traffic islands due to on-site construction. However, materials like paver blocks or dividers incur excise duty if not manufactured on-site. Services related to road construction, including supplying and fixing paver blocks, are exempt from service tax. (AI Summary)
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