Construction service query

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plz let me know d procedure for service tax of Construction service..lik how to calculate, payment fom, reurn and cenvat credits
Replies (1)

Its a big concern and believe me take consultancy on this front from an expert.

I would give you a preamble to it.

Such activities are required to be firstly classified under the two declared services:

1. Sale of under-construction unit: You can claim abatement of 75% from the total contract value (including land value) but cannot claim any cenvat on the input services;

2. Works Contract Service: you can opt for composition scheme as specified under New Rule 2A of the Service Tax (Determination of Value) Rules, 2006; i.e., 40% / 60% / 70% whichever is applicable; again the cenvat cannot be claimed on the input services.

Please its a complex field which requires an expert opinion based on the facts of the case.


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