Catagory of services

This query is : Resolved

DIBYENDU (Querist)
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21 April 2014
If a company engage in road repairing work then he will be fail under 'works contract service' & taxed @4.944% (40% of 12.36%) or will be fail 'maintenance or repairing service' & taxed @12.36%

Please Clarify.

Sandeep Mangal Agarwal

Sandeep Mangal Agarwal (Expert)
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22 April 2014 Dear Dibyendu,

Services provided by way of repair maintenance etc. of road is an exempt service if the road is used by general public. (As per Notification No. 25/2012 -ST dated: 20.06.2012 w.e.f. 01.07.2012)

Then why you are paying service tax please clarify in case of any further doubt.

DIBYENDU

DIBYENDU (Querist)
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22 April 2014 Dear Sandeep
I think that if the road is not use by general public i.e. if any road repaired within housing complex, school, factory then the contractor who repaired the road will be charge service tax in this invoice, collect from the receiver & pay to the service tax department, in this case he charged is service under works contract or repair-maintenance category?

Sandeep Mangal Agarwal

Sandeep Mangal Agarwal (Expert)
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22 April 2014 In my view , "Repairs of road" is normally covered under construction activity ( as repairs of road for use by general public is a construction activity , which is exempts from Service tax due to use by general public, so prima facie road repairing is a construction activity ,irrespective of whether use by general public or not)not under works contract and obviously not in repairs and maintenance service

Thanks

DIBYENDU

DIBYENDU (Querist)
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22 April 2014 But in what type of construction activity the repair service will be fail is if we repair a road for housing complex it will be fail under construction of residential complex service and if we repair a road within a factory it will be fail construction of commercial complex service? then what is category when we repair a road of school?

DIBYENDU

DIBYENDU (Querist)
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22 April 2014 In maintenance or repair service definition include ''maintenance or repair of property whether immoveable or not"

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