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Abatement on service tax on construction service

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Milan Agrawal

Chartered Accountant

126 Points Posted on 25 April 2014

Dear All,

As we know, abatement on Service Tax on Construction Service will be 75% if following condition is fulfilled, otherwise abatement will be 70%:

i. Carpet Area less than 2000 Sq. Ft.

ii. Consideration is less than Rs.1 Crore.

Now my query is, suppose in a Complex there are units/flats/shops of 1800 Sq. Ft amounting Rs. 50 Lakhs each and a person bought 2 or more unit/flat/shop in that complex, What rate of abatement will be available to him?

Regards,

CA Milan Agrawal

Replies (8)

PARV

TAX ASSISTANT.

149 Points Posted on 25 April 2014

Amendment for Abatement talked about the unit.

so I think that the abatement of 75% will be available irrespective same or different buyer.

wait for more response.

Thanks.

Milan Agrawal

Chartered Accountant

126 Points Posted on 25 April 2014

Further, is the abatement available only for Residential units?

PARV

TAX ASSISTANT.

149 Points Posted on 25 April 2014

yes, the abatement of 75% is allowable if above conditions are fulfiled.

In case of Commercial construction abatement of 70% allowable.

Refer notification No.09/2013 ST 08.05.2013

Manoj Agarwal

Service Tax Consultant Rourkela Service

2755 Points Posted on 25 April 2014

Yes, 75% abatmenet subject to above limits is available for each 'residential unit' irrespective of buyer purching single or multiple flats. For other than residential units, abatemnet is always 70%.