Service Tax abatement available for construction of complex, building or civil structure or a part thereof is being reduced
from the existing 75% to 70% except in case of residential unit :
a) having carpet area upto 2000 sq ft or
b) where the amount charged is less than ` 1 crore.

The rate of abatement for such homes and Flats which have a carpet area of 2000 sq. ft. or more; or have a value of Rs. 1 crore or more, has been reduced from 75% to 70%. However, low cost housing and single residential units will continue to enjoy existing exemptions from service tax.

—————-

Notification No. 2/2013 – Service Tax

New Delhi, the 1st March, 2013

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), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following 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;

(ii) The value of land is included in the amount charged from the service receiver.”.

(i) for residential unit having carpet area upto 2000 square feet or where the amount charged is less than rupees one crore;

25
(ii) for other than the (i) above. 30

 3. The notification shall come in to force on the 1st day of March, 2013.

[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 20th June, 2012, vide number G.S.R. 468 (E), dated the 20th June, 2012 and this notification has not been amended so far.

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Category : Service Tax (3283)
Type : Notifications (15213) Notifications/Circulars (30085)
Tags : Budget (1473) service tax notifications (1074)

0 responses to “ST – Change in Abatement Rate for residential unit”

  1. SATYA PRASAD says:

    Sir,
    I have purchased ready built apartment from Builder for Rs.20.36 lacs.on 12th March 2015. Area 1800 sft. First builder mortgaged to Govt for approval of plan and after NOC received from Govt. sold to me. Flat is completed in all respects and ready for occupation. Please suggest if I need to pay any service TAx for this sale transaction. If yes what is the percentage.

  2. Ranjan says:

    I have purchased a flat in ranchi of 1210sqr ft*rs.1750 and loan is Rs.1650000 what should be the service tax

  3. Yogesh V. says:

    Dear Sir,
    i have booked a flat of 83.08 sq.m on 16.10.2012. booking amount paid 5.00 lac. total value of flat is 25.00 lac.
    home loan taken against purchase of flat is 20.00 lac.

    Please suggest if i need to pay any service tax for this,after above change in notification of service tax, builder has given letter in jan-2013 for payment of 3.09 % service tax on total value of flat.
    please need guidance for same.
    thanks & regards ,
    Yogesh Verulkar

  4. Yogesh V. says:

    Dear Sir,
    i have booked a flat of 83.08 sq.cm on 16.10.2012. booking amount paid 5.00 lac. total value of flat is 25.00 lac.
    home loan taken against flat is 20.00 lac.

    Pls suggest if i need to pay any service tax for this,after above change in notification of service tax, builder has given letter in jan-2013 for payment of 3.09 % service tax on total value of flat.
    please suggest

  5. A K SHARMA says:

    Sir,
    I have purchased a flat in Ranchi. Area 1110sq/ft
    Pls suggest if i need ti pay any service tax for this, if yes what is the %.

    My loan amount is 21.65 Lacs

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