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Construction Services - Abatement 67%? or 75%?

gulshan bhardwaj (article) (36 Points)

18 May 2010  

Dear Sir,

I have query about service tax abatement in the "construction of commercial & industrial" category.  We were claiming abatement of 67%.  I have read in newspaper before passing the budget that in construction of commercial & industrial services category will get abatement of 75% from new year.

My query is the above abatement i.e. 75% is passed and if passed from which date is applicable?

I will be very thankful to you, if you could give the answer and please quote the related notification, etc.

Thanks & Regards

GULSHAN BHARDWAJ


 7 Replies

CA Vishal (CA working in industry) (620 Points)
Replied 18 May 2010

75% post May 1........

deepak (chartered accountant) (31 Points)
Replied 18 May 2010

abatement of 75% is not yet effective, finance bill 2010 has been approved but the date from which it will be enacted has not been disclosed

CA. AMIT BHUTANI (JOB) (124 Points)
Replied 24 June 2010

w.e.f.. 1/07/2010 notification on 22/06/2010

Gautam Joshi (Partner) (361 Points)
Replied 25 June 2010

 

 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance 
(Department of Revenue)

            New Delhi, the 22nd June, 2010

 

Notification No. 29/2010 - Service Tax

 

            G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2006-Service Tax, dated the 1st March, 2006, G.S.R. 115(E), dated the 1st March, 2006, with effect on and from the 1st day of July, 2010, namely :-

 

In the said notification, in the Table, after S. No. 7 and 10 and the entries relating thereto, the following S. No 7(a) and 10(a) and entries shall be inserted, namely:-

(1)

(2)

(3)

(4)

(5)

“7(a).

(zzq)

Commercial or Industrial Construction

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act.

Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.

25”;

“10(a).

(zzzh)

Construction of Complex

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to residential complex, referred to in sub-clause (b) of clause (30a) of section 65 of the Finance Act.

Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.

25”.

 [F. No. 334/03/2010 -TRU]

 

(K.S.V.V.Prasad)

Under Secretary to the Government of India

 

Venkatesan.k (Executive Finance ) (238 Points)
Replied 29 July 2010

75 % w.e.f May 1, 2010

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 30 July 2010

abatement of 75% is not yet effective, finance bill 2010 has been approved.w.e.f.. 1/07/2010 notification on 22/06/2010

kuldeep (Accountant) (49 Points)
Replied 27 June 2012

Sir,

I want to know the current service tax abatement in the "construction of commercial & industrial" category.  We were claiming abatement of 67%.  some one tell us that in 2012 - 13 budget the abatement is 60% and service tax payable on 40 %.

Is that true or tell me the vide notification no. in which the service tax ration is mentioned.


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