TIOL-DDT 1163 · Tuesday, 28 July 2009 · story 2 of 5

Pranab Da Repairs the Damage

It needs a hard core politician to understand the woes of the people.

In his reply to the Finance Bill, the Finance Minister said,

“Roads serve as a lifeline of the country. Therefore the Government has accorded the highest priority in developing and maintaining roads across the Country. Construction or laying of new roads is excluded from Service Tax. However, repairs and maintenance of roads are chargeable to Service Tax. Several requests have been received to exempt repairs and maintenance of roads from Service Tax. Therefore I propose to remove this anomaly by also exempting repairs and maintenance of roads from service tax with immediate effect”.