Construction and laying of new roads attract zero service tax, but repairs and maintenance do attract service tax. Government by Notification No. 24/2009-Service Tax, dated 27th July, 2009 exempted Repairs and maintenance work of Roads too from service tax. Notification is given below:-
New Delhi, the Date: 27th July, 2009.
Notification No. 24/2009-Service Tax
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, referred to in sub-clause (zzg) of clause (105) of section 65 of the Finance Act,1994, provided to any person by any other person in relation to management, maintenance or repair of roads, from the whole of the service tax leviable thereon under section 66 of the said Finance Act.
Under Secretary to the Government of India