Category - services of construction of new roads and also for laying new roads on existing roads

[Guest]

A Firm engaged in Civil construction business undertakes Government contracts for construction of new roads and also for laying new roads on existing roads which have lost their useful lives or are to be modernised or upgraded to a better quality. In all these cases no isolated repairs or patchwork is done. Can this service be classified under 'MANAGEMENT, MAINTENANCE & REPAIR SERVICES' on the plea that as existing road has been relaid or recarpeted, it tantamounts to REPAIR and thus chargeable to service tax under REPAIR SERVICES. YOUR COMMENTS?

[Madhukar N Hiregange]

Under indsutrial and commercial construction repair is covered. It may be more specific there than in general repairs. The exclusion then under the ICC would be available.

[Guest]

The activity of construction of new roads or laying new roads on existing roads which lost their useful lives is not a "Management, Maintenance & Repair Service".

AI Summary

Classification of road construction services: new construction and full relaying do not qualify as repair services, affecting service tax treatment. The central issue is whether construction of new roads and relaying/recarpeting of existing roads that have lost their useful life qualify as Management, Maintenance & Repair Services for service tax. One reply suggests industrial and commercial construction repair may be treated as a specific repair category with an exclusion under ICC rules; another reply rejects treating new construction or full relaying as repair, characterising such work as construction rather than maintenance or repair for tax classification.