07 February 2022
Dear sirs, Goods and service tax department issued notices to contractors carrying on highways work only. They are asking if there is a probability of service tax evasion for the year 2016-17. Will service tax provisions apply to persons carrying on highways department works? Can the experts kindly clarify this issue please.
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.
CAclubindia
