Purview of service tax applicability

[Guest]

We are in the business of tunnelling ie with the help of Tunnel boring machine we bore the tunnel.we are paid in terms of length of tunnel bored.the basis of our invoice to the client on a daily basis would be qty of tunnel bored 100metre rate per mrt Rs 100000 value of invoice per day Rs 1000000 are we liable to charge service tax on the value of the invoice. I understand that the activity of tunnel boring is outside the purview of the service tax.

[Madhukar N Hiregange]

please chack erection installation servcie where horizontal drilling is specifically included. I would sumise that there maybea liability

AI Summary

Service tax applicability on tunnelling work may arise where erection and installation classifications include horizontal drilling. Whether tunnel boring performed with a tunnel boring machine and billed by length falls within taxable service classifications such as erection and installation services, particularly where horizontal drilling is included, so that service tax may be chargeable despite unit rate invoicing.