Service tax on construction of road.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 Hello friends,

I am working in a construction co. engaged in taking up construction of civil works.

We have built a road for a well known Public co. for transportation of it's goods from one place to another (about 15 - 17 kms.). The road is going through few villages so it has been used by villagers.

My que. is - As road is used by general public (villagers), can we take it as road used by general public and claim exemption from service tax as per point no. 13(a) of Notification No. 25/2012 - ST.

CA Suresh Jain

CA Suresh Jain (Expert)
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07 September 2012 The construction of the road as described by you is a road which is going to be used by general public and therefore, the service taxx is not chargeable even if the payment is being made by a business entity.

But, for future in case case of any dispute raised by the department you should gather enough proof and information regarding use of road by general public. e.g. you can have a written consent from the gram panchayats allowing you to construct the road only if you agree that the same shall be allowed to be used by the all sections of the public.

For further clarification please mail the query at sureshjain.nj@gmail.com and pay if you please Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 Thank you Suresh sir for your valuable opinion.

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