Construction of a complex

Save Share

This query is : Resolved

GEETA RAJANI (Querist)

26 April 2013 Dear sir,
Assessee is (Builder and Developer ) providing construction of residential complex services . In which he is availing abatement of 75% (value of land is included) and 67% ( Value of land not included).But with effect from 01/07/2012 abatement of 67% will be applicable or not. Because in amendments only 75% abatement is showing and 67% abatement is not showing. please suggest us what should we do. If assessee is providing services without exclusion of land can he avail 67% abatement or not.
Thanks
GEETA RAJANI
FCA

CA Vikas Acharya

CA Vikas Acharya (Expert)

26 April 2013 no, after the changes came in last budget 2012, by notification 34/2012, government has taken back 81 notifications issued earlier, among which 1/2006 was also one.
hence the notification about that 67 or 75 % has been deleted now.
now all abatements are governed by notification 26/2012, according to which 75% is exempted in case of land is included in the value.
and also to be noted that with introduction of budget 2013, that abatement has been again amended to 70% (notification 2/2013), and the abatement in case of commercial properties now reduced to 70% (applicable from 01.03.2013)

now comes the point when land is not transferred:
than in that case the work will fall in WORKS CONTRACT and this particular abatement will be governed by Service tax vauation rule, abatements as follow:
following % of total amount charged is taxable
In case of original contract 40%
In case of MRRR of any GOODS 70%
Other than above two( eg: glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property) 60%
Remaining is abatement..
Total amt charged is Gross Amt Charged +FMV of all goods & services given by SR in relation to that – Amount charged by SR for the same including vat if any.

MRRR is maintainance repair renovation etc

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now