Construction of a complex
This query is : Resolved
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
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
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
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
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