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Construction of roads for resi.l as well as for commercial

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Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2011 Sir,
One of my client construct roads for TDI. Some roads for residential purposes and some roads (which were construct as per National Highway), which connects the TDI with National Highway. The roads which were construct as per National Highway specifications were actually to be construct by Haryana Urban Development Authority(HUDA), but due to delay by HUDA, TDI gives contract from their side to the contractor and pay for that. My query is that
a) Whether Service Tax will be applicable for my client or not.
b) If not, then please quote me rule/section/notification/circular/judgement.

Thanks in advance

Deepak Narayanan

Deepak Narayanan (Expert)

09 April 2011 Roads being non commercial construction will not come under commercial or industrial construction.

And under works contract service there is specific exemption for construction of roads

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