service tax on repairs & maintance of Road

This query is : Resolved 

06 March 2008 Dear Sir,

my comapny engaged in construction of road & building.service tax department demamded on repair & maintence of road of state govt & National Highway Authority of India.

repairing of road is one time repairing and rate will fix on basis of tender. profit margin of comapny doesn't exceeding 6 to 7 % hence company cannot sustain service tax on repairing of road.

plz give your valuable advise

06 March 2008 Service tax is collected from the persn on whom you raise the bill. What is the difficulty?


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