Service tax on government contracts prior to 01-07-12

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This query is : Resolved

Abhishek (Querist)

28 June 2013 If a person has undertaken construction activity for Government such as building of dams, canals etc.. will it exempt as per provisions of service tax before 01-07-12.???

CA Vikas Acharya

CA Vikas Acharya (Expert)

29 June 2013 earlier the construction service were taxable under (Section 65 (105) (zzq), and in the definition of this service the scope was limited.
in definition construction of dams, canals etc were exceptions.
hence were not taxable as the construction of same were not taxable service as per the above provision.

text was: (Section 65(25b) of the Finance Act, 1994)

Commercial or Industrial Construction” means —

(a) construction of a new building or a civil structure or a part thereof; or
(b) construction of pipeline or conduit; or
(c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or
(d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is —
(i) used, or to be used, primarily for; or
(ii) occupied, or to be occupied, primarily with; or
(iii) engaged, or to be engaged, primarily in,
commerce or industry, or work intended for commerce or industry,

but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams;

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