Construction of tubewells for government projects is exempt from payment of service tax, the Central Board of Excise and Customs (CBEC) has said. The clarification comes after Rajasthan Chief Minister Vasundhara Raje had written to Finance Minister Arun Jaitley last month on the issue as many contractors who were working with the Public Health and Engineering Department in Jhunjhnu, Sikar and Bikaner for tubewell construction had been served service tax notices.

Source - http://www.thehindubusinessline.com