From July 1 this year, no service tax will be levied on taxable service of commercial or industrial construction provided wholly within the airport. Similarly, the taxable service of commercial or industrial construction, when provided within the port or other ports for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways, will also not be levied a service tax from the beginning of July.
According to a notification issued by the Central Board of Excise and Customs, taxable service provided in the port, other port or airport by a cargo handling agency in relation to agricultural produce or goods intended to be stored in a cold storage as also taxable service in relation to transport of export goods in an aircraft by an aircraft operator will also not have to pay service tax.
Notification No. 42/2010-Service Tax,New Delhi, the 28th June, 2010
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 the taxable service of commercial or industrial construction referred to in sub-clause (zzq) of clause 105 of section 65of the Finance Act, when provided wholly within the airport, from the whole of service tax leviable thereon under section 66 of the Finance Act.
2. This notification shall come into force on 1st day of July, 2010.
F. No. 334/03/2010-TRU
Under Secretary to the Government of India