Service tax on Road work-reg

[N Balachandran]

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 

AI Summary

Service tax on road works: classification as construction excludes tax, while repair/maintenance classification attracts tax.
Whether service tax applies to widening of a road depends on classification: if the activity is formation or construction of a new or improved road it is excluded under the works contract/construction exemption; if characterised as repair or maintenance it attracts service tax under maintenance and repair service, though exemption notifications and their scope (including whether they extend to services provided to private persons) are debated.