Abatement - Construction of a complex, building, civil structure or a part thereof, intended for a sale - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 12 Construction of a complex, building, civil structure or a part thereof, intended for a sale (W.e.f. 1.7.2012) Scope of abated service - Notification no 26/2012-ST dated 20.6.2012 From 1.7.2012 to 28.2.2013 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. Effective Rate of tax : 25% of Service Tax prescribed u/s 66B 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. From 1.3.2013 to 7.5.2013 - notification no. 2/2013 ST dated 1.3.2013 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) for residential unit having carpet area upto 2000 square feet or where the amount charged is less than rupees one crore; Effective Rate of tax : 25% of Service Tax prescribed u/s 66B (ii) for other than the (i) above. Effective Rate of tax : 30% of Service Tax prescribed u/s 66B Conditions: (a) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004; (b) The value of land is included in the amount charged from the service receiver. From 8.5.2013 to 31.3.2016 - Notification No.09/2013 - 8.5.2013 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,- (a) for a residential unit satisfying both the following conditions, namely:- (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 Effective Rate of tax : 25% of Service Tax prescribed u/s 66B (b) for other than the (a) above. Effective Rate of tax : 30% of Service Tax prescribed u/s 66B 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 From 1.4.2016 - Not. 08/2016 - Dated 1-3-2016 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 Effective Rate of tax : 30% of Service Tax prescribed u/s 66B 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. Explanation by C. For the purposes of exemption at Serial number 12 - The amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting- (i) the amount charged for such goods or services supplied to the service provider, if any; and (ii) the value added tax or sales tax, if any, levied thereon: Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.