Abatement for Builder

Queries 649 views 1 replies

Rajiv Ranjan

Accounts

24 Points Joined May 2011

Dear all

As I know abatement in service tax is beneficial for builder rather than utilisation of credit. can anyone suggest me through proper calculation how we will convince to any one from angle of Builders that availment of abatement is beneficial for builders.

Regards

Rajiv Ranjan

Mail id- rajivranjan39 @ gmail.com

Replies (1)

CA. Rashi Goyal

Chartered Accountant

512 Points Joined December 2008

In my opinion it is not better in all the situations, it all depends upon the particular case. E.g if any builder has sub contracted its 90% of the work, than in such a situation cenvat credit is better. You have to calculate it according to budget for particulaer case.