service tax on input services

Originally posted by : ARVIND TEWARI
	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.

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.