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

Service Tax Exemption Clarified: No Blanket Exemption for PWD/CPWD; Specific Projects Like Airports, Bridges Exempt A discussion on a forum addressed the exemption of service tax for services provided by Public Works Department (PWD) and Central Public Works Department (CPWD). One participant clarified that there is no blanket exemption for PWD or CPWD, but certain projects like airports and bridges are exempt. Another participant added that service tax is applicable when the structure is intended for commercial or industrial use, but services provided to PWD are exempt if not used for these purposes.