Applicability of service tax on laying of cables under or alongside roads and similar activities - clarification regarding.

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..... aying of cables under or alongside roads and similar activities - clarification regarding. Disputes have arisen in some parts of the country regarding applicability of service tax on certain activities such as shifting of overhead cables to underground on account of renovation/widening of roads; laying of electrical cables under or alongside roads/railway tracks; between grids/sub-stations/transformers the distribution points of residential or commercial complexes and such activities as electrification of railways, installation of street-lights, traffic lights, flood-lights. This clarification takes into account the taxability of different activities taking into account the scope of all services (such as site formation/excavation/ earth .....

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..... ity to perform some other function) the same is outside the purview of this taxable service. (iii) 'Works Contract' incorporates the inclusions and exclusions of the aforementioned two taxable services (amongst others) and it is the nature of the contract (i.e. a contract wherein the transfer of property in goods involved is leviable to a tax as sale of goods) rather than the nature of activities undertaken, that distinguishes it from the previously stated taxable services. Thus, even in the case of 'works contract' if the nature of the activities is such that they are excluded from aforesaid two services then they would generally remain excluded from this taxable service as well. (iv) 'site formation and clearance, excavation, earthmov .....

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..... ond the distribution point of residential or commercial localities/complexes. Taxable service, namely commercial or industrial construction' or 'construction of complex' service [ section 65(105) (zzq)/(zzzh) ], as the case may be. 7. Installation of street lights, traffic lights flood lights, or other electrical and electronic appliances/devices or providing electric connections to them Taxable service, namely Erection, commissioning or installation services [ section 65 (105] (zzd ]. 8. Railway electrification, electrification along the railway track Not a taxable service under any clause of sub-section (105) of section 65 of the Finance Act,1994 4. The conclusions drawn above .....

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