Circular No.79/9/2004-ST dated 17/09/2004

[Asked by Guest]

One of my client is a contractor doing civil construction work for Ordinance Factory.  According to aforesaid circular , Government constructions normally would not be taxable, if it is used for residential, office purpose or for providing civic amenities.  However, Superintendent, Service Tax insists for levying service tax  on construction works after an abatement of 67% on gross amount of contract works. kindly let me know the correct position of leviability of Service tax  on construction work of Ordinance Factory.

AI Summary

Service tax on government construction may apply where no exemption notification, enabling assessment after abatement.
Leviability of Service Tax on construction for a government Ordinance Factory depends on whether a specific exemption exists; absent an express notification or circular exempting the activity, service tax may be levied and assessed, and departmental reliance on an erection/commissioning circular does not establish a blanket exclusion.