Service tax applicable in railway contracts

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Vishal Bomb (Querist)

15 July 2012 Is Service Tax applicable to Works Contract or Labour Contracts done in Railways Work shops or their Premises .

The scope is Installation , Wiirng , Testing Commissioing of Railway PAssenger coaches or Electrical / Mechanical Furnishing Activity for Coaches.

Plz conf on such scope of work where no supply element is involved is Service tax applicable incase the customer is Indian Railways or PSU Railway.

RENGARAJ R.K

RENGARAJ R.K (Expert)

15 July 2012 As per the negative list, if you are doing original works to railways including their premises/workshops, it is exempted. Please read the negative list.

14. Services by way of construction, erection, commissioning, or installation of original works pertaining to,-
(a) an airport, port or railways, including monorail or metro;

CA UMESHKUMAR R. ACHARYA

CA UMESHKUMAR R. ACHARYA (Expert)

17 July 2012
Shri Rengarajji is absolutly correct but

please take care exemption is only for

erection , construction or commissioning

or Installation.

If other activities like cleaning

or maintainance are undertaken then

there is no exemption.

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