CA Sandesh Mundra
Consult Us For Construction
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 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]