Specified Construction services - Service Tax Practice Manual / Ready Reckoner - Service Tax

Chapter 13 Specified Construction services (w.e.f. 1st July, 2012) Scope of Exempt Service Notification no. 25/2012 dated 20.06.2012 From 1.7.2012 to 29.2.2016 13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- ( a ) a road, bridge, tunnel, or terminal for road transportation for use by general public; ( b ) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; ( c ) a building owned by an entity registered under section 12 AA of the Income tax Act, 1961 (43 of 1961) and meant predominantly for religious use by general public; ( d ) a pollution control or effluent treatment plant, except located as a part of a factory; or ( e ) a structure meant for funeral, burial or cremation of deceased; From 1.3.2016 - Notification. 09/2016 - Dated 1-3-2016 13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- ( a ) a road, bridge, tunnel, or terminal for road transportation for use by general public; ( b ) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; (ba) a civil structure or any other original works pertaining to the In-situ rehabilitation of existing slum dwellers using land as a resource through private participation under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers. (bb) a civil structure or any other original works pertaining to the Beneficiary-led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; ( c ) a building owned by an entity registered under section 12 AA of the Income tax Act, 1961 (43 of 1961) and meant predominantly for religious use by general public; ( d ) a pollution control or effluent treatment plant, except located as a part of a factory; or ( e ) a structure meant for funeral, burial or cremation of deceased; Amending Notes w.e.f. 1.3.2016:- Services by way of construction, erection etc. of a civil structure or any other original works pertaining to the In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation component of Housing for All (HFA) (Urban) Mission / Pradhan Mantri Awas Yojana (PMAY), except in respect of such dwelling units of the projects which are not constructed for existing slum dwellers, is being exempted from service tax. Services by way of construction, erection etc., of a civil structure or any other original works pertaining to the Beneficiary-led individual house construction / enhancement component of Housing for All (HFA) (Urban) Mission/ Pradhan Mantri Awas Yojana (PMAY) is being exempted from service tax. Meanings and Definitions: general public means the body of people at large sufficiently defined by some common quality of public or impersonal nature; (See Notification no. 25/2012 dated 20.06.2012 , effective from 01.07.2012) Clarification by the Board ( Taxation Guide Guidance Note 7 Exemptions dated 20.06.2012) 7 .9.3 I am a contractor in number of projects for constructing roads. What is my tax liability on construction of roads under different types of projects? Construction of roads for use by general public is exempt from service tax. Construction of roads which are not for general public use e.g. construction of roads in a factory, residential complex would be taxable. 7.9.5 What is the service tax liability on construction of a religious building? Service tax is exempt on construction of a building owned by an entity registered under section 12 AA of the Income tax Act, 1961 and meant predominantly for religious use by general public