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CA Sandesh Mundra

Consult Us For Construction

Amendment in service tax on construction , complex services

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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 servicetax 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.

[Notification No. 09/2013 ST dated 08.05.2013]

Source: www.cbec.gov.in

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CA Sandesh Mundra, Consultant – Management Audit and Indirect Taxation - Chartered Accountant, Diploma in Information System Audit, Diploma in Insurance & Risk Management , Certificate from ICAI on International Financial Reporting Standards. Actively associated with clients in the industrial construction sector since last 9 years.He possesses special skills in structuring the indirect tax component of the works contracts and as management auditor, has visited several construction sites in various states like Orissa, Rajasthan, Gujarat, Maharasthra, Madhya Pradesh etc. During the course of said visits he has been to very large industrial complexes, refineries, power plants etc


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We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.