Compoiste construction service

CONSTRUCTION SERVICE :

1. Difference b/w contractor and builder. Contractor is the person who supplies labour to builder for construction of building. That person is covered under Manpower Supply service. [Refer Partial Reverse Charge alongwith it]. Builder is for example, DLF constructing building to be sold to buyers. They are providing services by way of construction of building and hence covered under construction service.

2. Construction service is a declared service u/s 66E(b)

3. Its valuation as per Service Tax Valuation rules is very technical/difficulat. So reference may be made to Abatement issued via N/N 26/2012 - entry number 12

Service tax can be paid on 25%/30% of amount of bill @ 12.36%. Doing so person is not allowed to avail benefit of CCr on Inputs used. However, he is eligible to avail CCr on Input Service and Capital Goods.