Liability of service tax on executing contracts of Army, CPWD & other central, state govt.

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pvt ltd company engaged in business of contractor executing works of mainly Army, CPWD & other central, state govt. Does the contracts executed for these departments have liability of service tax. Most of the govt contractors are not registered under service tax nor any govt department asks for compliance of service tax though they ask for all other registrations like IT, ST, vat etc. just wondering if there is any exemption of service tax on works executed for govt depatments.

AI Summary

Service Tax Liability on Government Contract Work: No Exemption for Construction Activities with Commercial Purpose. A private limited company engaged in contracting work for the Army, CPWD, and other government departments inquired about the liability of service tax on such contracts. Despite most contractors not being registered for service tax and government departments not requiring it, there was uncertainty about exemptions. One response clarified that construction activities generally do not incur service tax unless they are for commercial or industrial purposes. Another response confirmed that there is no exemption for service tax on works executed for government departments, indicating potential liability if the work is commercial.