Constructionof Roads is not a taxable service as per the definition of commercial or industrial construction service.If Mr A provides input services to Mr. B who is executing contract work of roads construction should Mr. A charge service tax on the service provided ?
Is service tax chargeable on a service( other wise taxable ) if it is provided towards execution of an exempted service ? May kindly provide any circulars/clarification/explanations in this regard.
Thanks.
| Originally posted by : ARVIND TEWARI | ||
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Constructionof Roads is not a taxable service as per the definition of commercial or industrial construction service.If Mr A provides input services to Mr. B who is executing contract work of roads construction should Mr. A charge service tax on the service provided ? Is service tax chargeable on a service( other wise taxable ) if it is provided towards execution of an exempted service ? May kindly provide any circulars/clarification/explanations in this regard. Thanks. |
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Logically any services provided towards execution of an exempted services would be exempt. Hence Mr. A is not liable to charge service tax provided the input services is directly linked with the execution of road contract.
I think Mr. A, who provides input services to Mr. B will charge service tax on him. Because service provided by Mr.A is a taxable service.
And Mr. B as because he is providing non-taxable service can not take credit of service tax paid by him to Mr. A. So, he can take refund of amount of service tax paid.
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