Sir,
I would like to have the clarification regarding the service liability on Road works. As per the service tax provisions, the Formation of road is out of service tax net. in case of work carried for widening the existing road by exacavation, levelling and filling with available Red gravels on the road side without Tar & Metal, will it attract attract Service tax? The Road may be used only for Transport purposes which may not be the permanent Road for public uses as widening areas are belongs to private party.
Regards
N.Balachandran
Service Tax Exemption on Road Widening Projects: New Road Formation Likely Exempt, Not Maintenance. A forum participant inquired about the service tax liability on road widening projects involving excavation, leveling, and filling without tar and metal. Responses varied: some asserted that road construction and improvement are exempt from service tax under specific notifications, while others highlighted that maintenance and repair services might attract tax. One reply noted that the exemption generally applies to government projects, but the wording in the notification could extend to private parties. The consensus leaned towards no service tax liability for the described work, as it constitutes new road formation rather than maintenance. (AI Summary)
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