Construction of Jail

[DEEPAK SHARMA]

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.  

AI Summary

Service tax exemption for jail construction: prison building works fall outside taxable commercial or residential construction services.
Construction of jails and reformatories does not fall within taxable Commercial or Industrial Construction service or residential complex construction; therefore such prison construction is not liable to service tax. The primary test is the building's intended use-structures not used for commerce or industry and serving public/state functions (for example, courts, government hospitals, military structures, old age homes, jails/reformatories) are excluded from the levy under the Finance Act.