Works contract inclusion under service tax to be clarified, defining taxable construction services and key infrastructure exemptions.
The government will issue formal clarification on the inclusion of works contract within the service tax net to resolve scope uncertainties; works contracts involve transfer of goods and services and taxable components include erection or installation, commercial or industrial construction, turnkey projects and construction of complex, while specified infrastructure projects such as roads, airports, railways and ports are excluded; CBEC will issue two master circulars on technical and procedural service tax issues.

Service tax growth supports confidence in meeting indirect tax targets as collections outpace other levies.
Service tax collections registered substantially higher growth nationally and in a metropolitan commissionerate, outpacing excise while customs also rose markedly; these collection patterns underpin confidence that indirect tax targets and budgetary estimates can be met, with macroeconomic expansion cited as supportive of projected outcomes.