Whether Service Tax Applicable on construction of APMC ( Agriculture Market ) for the Contractor. Roads are built in the APMC . Can Exemption be claimed for construction of Roads.
Pl suggest.
CA Mayur zanwar (Partner Kaloti & Lathiya) (184 Points)
24 August 2009Whether Service Tax Applicable on construction of APMC ( Agriculture Market ) for the Contractor. Roads are built in the APMC . Can Exemption be claimed for construction of Roads.
Pl suggest.
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 12 September 2009
One has to go through the constitution of APMC market to form an opinion about the objectives of the Marketing Corporation with regard to the facts - whether any commercial benefits are accrued by letting out the propeties of the Market or otherwise . If the APMC activities can be regarded as commercial then service tax s lieviable otherwise not.
So far as road is concerned , if there is a separate contract for construction of road, then the construction activities would not attract service tax . However mere reapairs to road may attract service depending on the nature of repairs undertaken. However, July onwars even repairs of roads are excluded from the perview of service tax
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