Service tax on highways contract works


This query is : Resolved 

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This discussion clarifies whether service tax applies to highway contract works. Generally, the construction of roads intended for public use is exempt from service tax. However, if the road construction is for private use, such as within a factory or residential complex, it is subject to service tax.

(Querist)
07 February 2022 Dear sirs, Goods and service tax department issued notices to contractors carrying on highways work only. They are asking if there is a probability of service tax evasion for the year 2016-17.
Will service tax provisions apply to persons carrying on highways department works?
Can the experts kindly clarify this issue please.

07 February 2022 Service tax not applicable.

Construction of roads for use by general public is exempt from service tax. Construction of roads which are not for general public use e.g. construction of roads in a factory, residential complex would be taxable.

UBEIDULLA (Querist)
07 February 2022 Thank you sir....

You are very knowledgeable....

08 February 2022 You are welcome.......


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