Service tax on road project

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Dear expert,

i am working in a construction company and we have got a new road project in patna... as we know that there is no service tax on road project... but we are taking services from some consultants and and subcontractors and they are charging service tax in thier bills...so my question is ..... would we liable to pay service tax on bill of service taken from parties.... if not then what is the process... how can we convince the our subcontractor and consultants.

Please Provide me a Solution as soon as possible...

Thanks

Replies (1)

   See ST notification #25/2012 dated 20th June, 2012. This is the mega exemption notification. Roads and construction made for govts are exempted. The main contractor and the subcontractors are also exempt. Visit the web site www.cbec.gov.nic.in and go to Service Tax,click notifications,click 2012 and read the notification no 25/2012. At the bottom of it they give further amendments made to it also. You can get full information up to date.On this basis you can ask your sub-contractor not to charge ST in their bills in future. Further they can also apply for refund of such excess tax paid by them from the Commissionerate of ST of their area. Or you can also get such refunds by filing an application along with copies bills. Meet the concerned officer in the ST office.......mjk


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