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service tax on repairs & maintance of Road

This query is : Resolved 
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(Querist)
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
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
06 March 2008 Service tax is collected from the persn on whom you raise the bill. What is the difficulty?
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