Provision of exempted services - PWD and CPWD

[Guest]

Services of PWD and CPWD have been exempted from service tax. hence i would like to know under what provision these have been exempted or is there any provision or Law regarding the same.

[Surender Gupta]

There is no specific exemption to PWD or CPWD. Only certain activities or projects like airports, railways, transport terminals, bridges, tunnels and dams are exempt. You may refer to the provisions relating to "Services involved in execution of works contract".

[Guest]

Service tax under this category is leviable when the building or civil structure is used or to be used for commerce or industry. Here service provided to PWD is exempted as this will not be for commerce and Industry.

AI Summary

Exemption for public works services: service tax applies only when works create assets used for commerce or industry. No specific statutory exemption exists for PWD or CPWD; exemptions depend on the nature of the work and categories of projects under the execution of works contracts. Service tax is leviable where the constructed building or civil structure is used for commerce or industry, whereas services provided to a public authority that are not for commercial or industrial use are treated as exempt.