We are civil construction firm and charging 4.944% as service Tax. Whereas experts are advised to charge3.71% as ST. Please advise and describe about the abatement.
G.srinivasan
srinivasan (gm) (130 Points)
27 March 2015We are civil construction firm and charging 4.944% as service Tax. Whereas experts are advised to charge3.71% as ST. Please advise and describe about the abatement.
G.srinivasan
CA PAYAL GAJJAR
(Personal Practice)
(150 Points)
Replied 28 March 2015
Sir,
In case of works contract service 60% abatement is provided where works contract is for execution of original works i.e 12.36% - 60% =4.944%
while in case of construction services where building,commercial complex, civil structure is constructed then 70% abatement is available i.e.12.36-70%=3.71% but if u r constructing residential unit having carpet area less than 2000 square feet and amount charged is less than 1 crore then 75% abatement is available.
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