Composition rate under consideration for errection & instalation

[Guest]

what about composition @2% under concederation for errection & instalation works at the time of bujet 07 what is desided now,is it fair for errection & instalation works of electrical construction up to 33 kv system for basic infrastructure devlopment& renoation in india under various schems of govt. of india & aids from other contrys like JBEIC,ADB,APDRP

[Ravi Chopra]

Only roads, airports, railways, transport terminals, bridges, tunnels and dams are out of service tax net under Service Tax on Works Contract. Activity mentioned in the query is subject to service tax. Composition scheme is announced.

AI Summary

Composition scheme for erection and installation: service tax applies to electrical construction while specified infrastructure is excluded. The response clarifies that service tax on works contracts excludes only roads, airports, railways, transport terminals, bridges, tunnels and dams, and that electrical erection and installation activities (as queried) are subject to service tax; it further notes that a composition scheme has been announced without further specification of scope or eligibility.