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Construction services

This query is : Resolved 
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(Querist)
29 April 2008 A private limited company entered into an agreement with the Builders for construction of Roads to the site where construction of Flats, Villas, School etc are going to be done by the builders. Amount charged by pvt ltd company 1.25 crore

The private limited company gives the contract to another company for the construction of the road for 1.00 crore

Whether the private company is liable to service tax who is actually not doing constrction of the road directly?
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Shyam Lal Naik

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Shyam Lal Naik (Expert)
21 May 2008 Yes

The pvt. ltd. company is liable under "Site formation and clearance service".
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