Dear Forum
One of the my client is a contractor duly registered under service tax department, having a contract of construction of disctrict jail at allahabad, you are requested to guide me that whether service tax is applicable on the construction of jail as, it is government enterprises.
Service Tax Exemption Confirmed for Jail Construction under Finance Act 1994; Not Commercial or Industrial Use. A contractor inquired about the applicability of service tax on the construction of a district jail, as it is a government enterprise. The response clarified that service tax is not applicable because the construction of a jail does not qualify as commercial or industrial construction, nor as a residential complex. Jails are used to house criminals and are not intended for commercial or industrial purposes. Therefore, under the Finance Act, 1994, structures like jails, residential housing complexes, old age homes, courtrooms, government hospitals, and military structures are exempt from service tax. (AI Summary)
TaxTMI 
TaxTMI 
