applicability of service tax on construction of stadium

[RAM AVTAR]

whether service tax is applicable on construction of Jawahar Lal Nehru Stadium for civil construction of lower tier of stairs for sitting

[Brijesh Verma]

Stadium as such is not exempt from taxation under the Construction. Stadium is infact used for generating revenue and consequently it qualifies as Commercial in nature. Tax would be leviable...!!!!

[rishi mohan]

Any service provided or to be provided to any person, by any other person, in relation to commercial or industrial construction shall be a taxable service.

Construction of stadium is for a commercial purpose, therefore the service tax shall be leviable on the same. 

[RAM AVTAR]

As per my knowledge primary object for construction of stadium is to promote the games in india instead of commercial activity.  Since stadium is also classified in PS-3 category (public and semi public facilities) under master plan 2001 of Delhi

[Brijesh Verma]

The basic guideline is "Used or to be used" for commercial purposes.... Please check this. However, I strongly feel that if a keen look is given to the bye laws of the Stadium, we can come out with some strong point for defense.

AI Summary

Service tax applicability on construction: stadium works treated as commercial construction and likely taxable, absent specific exemptions. Construction services for a stadium are generally taxable as commercial or industrial construction when the stadium is used or intended to be used to generate revenue. The key inquiry is actual and intended use: if the facility functions commercially (ticketing, events, leases) it falls within the taxable ambit, though arguments based on public use classification and promotion of sport may be raised and should be tested against master plan categorizations and the stadium bye laws.