Service tax on Excavation of Public Road, Service Tax

[Amit Palsule]

Dear Sir,

What is the position of Services in respect of "Site formation, Clearance and Excavation Services" post Service tax 2012?

Prior to 2012, Notification 17/2005 ST Dt. 07/06/2005, exempted such services in respect of road work. Post 2012, Mega Exemption Notification 25/2012, Clause 13 (a) exempts "

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;"

All the above work cannot be executed unless the excavation activity is done. Can we consider the services of excavation of public roads as exempted under the said category?

Posts / Replies

[KASTURI SETHI]

No. Logically and practically you are right but statutorily you are not right. Both are different services and both have different accounting codes and both were specified/classified under different Sections of the Finance Act, 1994. After 1.7.12, though classifications and accounting codes were omitted but these were valid for identification of Service (based on nature of service) and for statistical purpose respectively. So no exemption for site preparation services on the ground that construction of public road is exempted.