Description:
Taxability of services provided by sub-contractors to the works contractors in respect of construction of Dams, Tunnels, Road, Bridges, etc.- Circular No. 138/07/2011-ST, dt. May 2011.
The CBEC vide the abovesaid Circular has clarified that the services received by the work contract service provider service provider from its subcontractors are distinctly classifiable under the respective sub clauses of section 65 (105) of the Finance Act by their description.
In other words, these service are not exempt from service tax even if the same are provided in respect of construction of Dams, Tunnels, Road, Bridges etc.
Source:
1. www.tpcc.in
2. The Tax Reference .Volume120. Issue No.2, 11 July 2011 Page No.128.
Our comment:
The sub-contractors are not eligible for exemption even though they carry on construction of dams, tunnels, Roads, Bridges etc. on behalf of main contractors.
