No Service Tax on services provided in relation to execution of Work Contract when wholly provided within an airport

No  Service Tax for  work contract executed wholly within  an  airport.

  Definitions of taxable service and classification and relevant notification is reproduced here :

Notification  No. 10/2011 – Service Tax    New Delhi, the 1st March, 2011

G.S.R. (E).-    In exercise of the powers conferred by sub-section (1) of section 93 of the 

Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, 

on being satisfied that it is necessary in the public interest so to do, hereby exempts services provided 

in relation to the execution of works contract, referred to in sub-clause (zzzza) of clause (105) of 

section 65 of the Finance Act, when provided wholly within an airport and classified under sub-clause 

(zzm) of clause (105) of section 65 of the Finance Act, 1994, from the whole of service tax leviable 

thereon under section 66 of the Finance Act.

If  Service is classified  under  sub-clause (zzm) and is taxable . Definition is :" to any person, by airports authority or any person authorised by it, in an airport  or a civil enclave; "

                    '

Taxable service of work contract is defined as  :"(zzzza)  to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways,   transport terminals, bridges, tunnels and dams.

Explanation.—For the purposes of this sub-clause, “works contract” means a contract wherein,—

(i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and

(ii) such contract is for the purposes of carrying out,—

(a)    erection, commissioning or installation of plant, machinery, equipment or  structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or

(b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or

(c) construction of a new residential complex or a part thereof; or

(d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or

(e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;"