Vide Circular NO. 110/04/2009- ST, DT. 23/02/2009 it has been clarified that while construction of road is not a taxable service, management, maintenance or repair of roads are in the nature of taxable services, attracting service tax.

The activities can be categorized as follows,-

(A) Maintenance or repair activities:
I. Resurfacing
II. Renovation
III. Strengthening
IV. Relaying
V. Filling of potholes

(B) Construction Activities:
I. Laying of a new road
II. Widening of narrow road to broader road (such as conversion of a two lane road to a four lane road)
III. Changing road surface ( graveled road to metalled road/ metalled road to blacktopped/ blacktopped to concrete etc)