Abatement on erection, commissioning and installation

abatements 34921 views 3 replies

Dear all

 

Please clarify what is the abatement rate for original work carried under service category (Erection, Commissioning and Installation)   after 1-7-2012

whether 67% or 60% and also please give the notification number.

Thanks in Advance.

Replies (3)

Notification No. 24/2012-service tax,

 In case of original work pay service tax on 40 % of value

In case of maintenance or repair or reconditioning or restoration or servicing of any goods pay service tax on 70 % of value

In case of all other works contract pay service tax on 60 % value

and pay works contract tax on the whole amount excluding service tax if the amount is greater than 1 cr.

Thank you very much sir

Notification no. 24/2012-ST provides service valuation rules only related to Work Contract Service as mentioned above. Such cannot be called as abatements and also they do not apply to Erection, Commissioning and Installation Service as there is no transfer of property involved . There is no abatement prescribed for Erection, Commissioning and Installation Service.
 


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