Service tax on digging, levelling, filling, fixing etc. (construction of road), Service Tax

[sunil mehta]

A small contractor gets the foll: work from municipal corporation: 1)Digging out existing materials (cement,kapchi. etc.) from existing pavement(footpath) 2)Levelling of earth work, 3)Filling of sand ,kapchi, ets to flatten the suraface, 4)Fixing the ready made purchased pavement blocks on footpath , (note:contractor buys pavement blocks from the market ) As per the work order rate for pre-fixing ready block is based on square mtr. basis (digging out old earth work,surfacing etc) , & rate for ready made fixing charges are quoted separetely (pavement block + fixing chgs.) Query :a) It is not construction of roads (road is exempted) b)will it fall under " construction of civil structures" ? (as per definition ) c)Pl. suggest suitable service under which it falls? d)when rates quoted by mun. corporation for pre-fitting and actual pavemnt block price are different ,how to claim abatement for actual pavement block purchased from the market?

Posts / Replies

[napolean bonaparte]

Pavement or footpath is used by pedestrians where as the main body of the road is used by the motorists or cyclists, so what difference does it make and why it does not fall within the definition of 'road' and gets excluded from the definition of civil structure as provided there in ?

[Anish Jain]

In my opinion it is also covered under Constructino of Road and is exempted.