Service tax on original works contract

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ritesh patel (Querist)
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04 September 2016 Hello all experts,my query is related to service tax on with material contract for construction of building for commercial use.following is my question please solve....
1) what is rate of service tax applicable, if we opt for composition scheme.?
2)abatement is applied or not, if yes, which notification applied for claiming abatement?
3) cenvat credit can be availed or not?

Sunil Kumar

Sunil Kumar (Expert)
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04 September 2016 Hi ritesh, No service tax applicable on transfer of ownership in the goods. ( material contract)

ritesh patel

ritesh patel (Querist)
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04 September 2016 Yes sir, but what about 40% service portion.....

Sunil Kumar

Sunil Kumar (Expert)
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05 September 2016 Hi,

For Construction of building,

a) No composition scheme is available (Rule 2A of Valuation Rules is not applicable for construction service but for works contract)

b) Yes abatement is available under Notification no 26/2012 and abatement is 70%

c) on claiming abatement you are not entitled credits of Input (Credit of Input service and credit of Capital Goods are available).

Regards