CA Day Offer: Get 10% OFF on CAclubindia Pro 1-Yr & 2-Yr Plans. Subscribe Now!

Service tax for rail under bridge

678 views 2 replies

Vivek Chauhan

Others

25 Points Posted on 05 December 2013

Hi,

We are a private firm executing projects for Railways. We are now working on a Project for building Rail Under Bridge to remove an existing unmanned crossing for North Western Railway. Wanted to know if we are liable to pay service tax.

Confusion is that will this be counted as new construction or maintainence.

Also, will there be a partial service tax? The work of construction of new Rail Under Bridge will be exempted but the part of contract pertaining to removing existing rail line and putting it back will be chargable?

Thanks in advance.

Thanks.

Replies (2)

CA VIRAL SANGHVI

Finance head

681 Points Posted on 05 December 2013

As per Section 66 B of Service Tax ,

Services by way of construction , erection , commissioning ,or installation of original works pertaining to -

an Airport , port or railways, including monorail or metro is an exempted serivce. AND

Services provided to the Government, a local authority or a governmental authority by way of
construction, erection, commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of -
(a) a civil structure or any other original works meant predominantly for use other than
for commerce, industry, or any other business or profession; is an exempted service

so no service tax will be leviable.