Service tax Changes on Construction of a complex, building, civil structure

CBEC has amended Notification No. 26/2012- ST dated 20.06.2012 with a view to remove the ambiguity prevailing on the rate of abatement of service tax on construction of residential unit.
Notification No. 09/2013- ST dated 08.05.2013 has amended the rate of abatement in the case of construction of a  complex, building, civil structure or a part thereof in the following manner:
(i) Service tax has to be paid on 25% value of a residential unit if the following two conditions are fulfilled cumulatively:
a) The carpet area of the unit is less than 2000 square feet; and
b) The amount charged for the unit is less than Rs.1 crore;
(ii) In other cases, service tax will be paid on 30% of the value of a complex, building and civil structure.
The above abatement is subject to certain terms and conditions mentioned in the notification.

NOTIFICATION NO 9/2013 – ST.,

Dated: May 8, 2013

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, 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.26/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

In the said notification, in the TABLE, for serial number 12 and the entries relating thereto, the following serial number and the entries shall be substituted, namely:-

“12. 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,- (i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004;
(a) for a residential unit satisfying both the following conditions, namely:– 25 (ii) The value of land is included in the amount charged from the service receiver.”.
(i) the carpet area of the unit is less than 2000 square feet; and (ii) the amount charged for the unit is less than rupees one crore;

(b) for other than the (a) above.

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[F. No. 334 /3/ 2013-TRU]

(Raj Kumar Digvijay)
Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 26/2012 – Service Tax, dated the 20th June, 2012, vid e number G.S.R. 468 (E), dated the 20th June, 2012 and was last amended vide notification No. 2/2013 – Service Tax, dated the 1st March, 2013, vide number G.S.R.152(E), dated the 1st March, 2013.

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Category : Service Tax (3290)
Type : Notifications (15398) Notifications/Circulars (30679)
Tags : Budget (1483) CBEC (380) service tax notifications (1079)

0 responses to “Service tax Changes on Construction of complex, building, civil structure”

  1. Mukesh says:

    how to compute service tax????

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