Notification Number

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 Hello Experts,
Please tell me notification number in which 75% abatement is available for constuction of residential complex.

It's urgent....

CA Sanat Pyne

CA Sanat Pyne (Expert)
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20 December 2010 If the service is covered under service of construction of commercial buildings or residential complexes, builder can opt for Abatement Scheme applicable to these services, under which service tax is to be paid on 25%/33% of the gross value received, in terms of Notification 1/2006. Alternatively, they can opt to pay service tax under Notification No. 12/2003-ST dated 20-06-2003, as per which, the service provider is exempted from paying service tax on the value of goods sold/transferred. The benefit of this Notification is very much available to Developers/Builders/Works Contractors.

With effect from 1.7.2010, any person providing taxable service of commercial or industrial construction or construction of residential complex (except completion and finishing services like glazing, plastering, painting, tiling, wood and metal joinery and carpentry, swimming pools, acoustic applications etc.) can opt to pay service tax as follows

(a) on 33% of gross amount charged if the gross amount does not include value of land

(b) on 25% of gross amount charged if the gross amount includes value of land (Till 1-7-2010, the 25% scheme was not available. Only 33% scheme was available).

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