TAXABILITY OF SURVEY AND MAP-MAKING SERVICES.

[Dr. Sanjiv Agarwal]

Service tax has been imposed on survey and map-making services rendered to any person by any other person engaged in provision of such services by the Finance Act, 2005 with effect from 16th June, 2005 vide Notification No. 15/2005-ST, dated 7-6-2005. The gross amount charged to any person or total consideration received by service provider in relation to survey and map-making services shall be chargeable to service tax.

Meaning of Survey and Map-making

Section 65(104b) defines ‘survey and map-making’ as under—

“survey and map-making” means geological, geophysical or any other prospecting, surface, sub-surface or aerial surveying or map-making of any kind, but does not include survey and exploration of mineral”..

According to the definition, survey and map-making is a specific inclusive definition with specific exclusions. It includes –

(a) geological, geophysical or any other prospecting,

(b) surface, sub-surface or aerial surveying, and

(c) map-making of any kind.

It excludes survey and exploration of minerals as it is covered under a separate category of taxable service.

Thus, all types of related prospecting and all types of surveying are covered but exploration is excluded. Any activity in relation to making of maps will also be covered. Map-making services provided by any person except Government controlled or authorized persons will be covered under the definition.

It may be noted that Section 65(104a) covers survey and exploration of minerals which also includes geological, geophysical or other prospecting and surface or sub-surface surveying or map-making services but these services are in relation to exploration of minerals, oil or gas. In ‘survey and map-making’ services under this category, all such surveys, prospecting and map-making services will get covered which are not covered under definition in Section 65(104a). Service in relation to goods etc. other than mineral, oil and gas will be covered for service tax purpose under this category.

In CCE & C, Vadodara-II v. Mascon Multi Services & Consultants Pvt Ltd 2010 -TMI - 77181 – (GUJARAT HIGH COURT), where assessee was engaged in activities related to engineering survey, cadastral survey, soil investigation and drawing submission, it was held that such activities do not fall within the ambit of definition of consulting engineer as the said definition envisages liability to pay service tax by any qualified engineer or firm engaged in business of rendering advice, consultancy or technical assistance as a professional. Such services would be covered under section 65(104b), viz, survey & map making.

Geological means science relating to the history and development of earth’s crust with its successive floras and faunas. It deals with physical structure and substance of the earth.

Geophysical means to study the physical properties of earth including meteorology, hydrology, oceanography, seismology, radioactivity etc.

Surface means outer or upper body or part of the body or object. Sub-surface means the stratum or strata below the earth’s surface i.e., something located beneath the surface or underground.

Prospecting means to explore an area or inspect a region or location, search for something.

Surveying is a branch of applied mathematics that teaches the art of determining the area of any portion of earth’s surface, length and directions of the boundary lines and contour of the surface and of accurately delineating the whole on paper. It means to measure for mapping purposes. Surveying means to examine and record the area and features of land so as to construct a map, plan or any description.

Taxable Service

Taxable service has been defined under Section 65(105)(zzzc) as under —

“any service provided or to be provided to any person other than by agency under the control of or authorized by, the Government, in relation to survey and map-making”.

To be taxable, following conditions should be satisfied –

(a) Service should be provided by any person to any other person.

(b) Services should relate to prospecting and surveying of objects, items etc. other than minerals, ores, gases and oils.

(c) Surveying may be of any type – surface, sub-surface or aerial.

(d) Prospecting may be any prospecting services.

(e) Government authorized or controlled agencies shall not be covered for service tax.

(f) Survey and exploration of minerals are excluded.

‘Survey and exploration of minerals’, which is a taxable service under sub-clause (zzv) of section 65(105) since 2004, covers specified services rendered in relation to location or exploration of deposits of mineral, oil or gas. The new taxable service of ‘survey and map-making’ classifiable under sub-clause (zzzc) of section 65(105) of the Finance Act, 1994, covers other such activities excluding “survey and exploration of minerals” classifiable under sub-clause (zzv) of section 65(105) since 2004. (Circular No. B1/6/2005-TRU dated 27.7.2005 refers).

Person Liable

Any person (including individuals) other than agency under the control of or authorized by the Government providing survey and map-making services or activities to any other person shall be liable to pay service tax and shall be treated as an assessee for service tax purposes.

 

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