News

May 11, 2013


AMENDMENT IN SERVICE TAX ON CONSTRUCTION, COMPLEX SERVICES

 AMENDMENT IN SERVICE TAX ON CONSTRUCTION, COMPLEX SERVICES

 

CBEC has amended Notification No.26/2012-ST dated 20.06.2012 with a view to remove the ambiguity prevailing on the rate of abatement of Service Tax on construction of residential unit.

 

Notification No.09/2013- ST dated 08.05.2013 has amended the rate of abatement in the case of construction of a complex, building, civil structure or a part thereof in the following manner:

 

(a) Service Tax has to be paid on 25% value of a residential unit if the following two conditions are fulfilled cumulatively:

(i)          The carpet area of the unit is less than 2000 square feet; and

(ii)         The amount charged for the unit is less than rupees one crore;

 

(b) In other cases, service tax will be paid on 30% of the value of a complex, building, civil structure.

 The abatement is subject to the following conditions:

(i)          CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004;

(ii)         The value of land is included in the amount charged from the service receiver.

 
Attachment:  1368253638.pdf