I am confused as to what abatement has to be taken with respect to Construction of Residential Flats, where there is a Tripartite Agreement between The Builder and Land Owner & the buyer of the Flat.
Answer from the Point of view of the Builder of the Flat who is the Service Provider in the case.
Whether Notification No. 24/2012 - Service Tax
(https://www.servicetax.gov.in/notifications/notfns-2012/st24-2012.htm)
or
Notification No. 26/2012- Service Tax
(https://www.servicetax.gov.in/notifications/notfns-2012/st26-2012.htm) ????
Notification No.24 talks abt -
In case of works contracts entered into for execution of original works, service tax shall be payable on forty per cent. of the total amount charged for the works contract;
Notification No.26 talks abt -
Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority
Abatement of 75 %
Conditions:
(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii)The value of land is included in the amount charged from the service receiver.
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