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TMI Blogworks contract serviceX X X X Extracts X X X X X X X X Extracts X X X X ..... works contract service X X X X Extracts X X X X X X X X Extracts X X X X ..... light of Explanation II of Not.No. 26/2012-S.T OR something else. Deptt. is insisting for 50% of (40% of 1,00,000). Please give your valuable advise. Reply By ashish chaudhary: The Reply: If service availed in relation to new construction, the liability under RCM would be as follows: ₹ 1,00,000*40%*50%*tax rate If repair services etc. availed, tax would be ₹ 1,00,000(70%*50%*tax r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Reply By Rajagopalan Ranganathan: The Reply: Sir, As per Notification No.26/2012-ST dared 20.6.2012 (with effect from 1.7.2012)- 2[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 residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial 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; 25 (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 charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the service receiver.] (b) for other than the (a) above. 30 If the carpet area is less than 2000 square feet and the amount charged is lex than one crore then the calculation will be 50% of 12.36% of ( 25% of 1,00,000). If the carpet area is more than 2000 square feet and the amount charged is more than one crore then the calculation will be 50% of 12.36% of ( 30% of 1,00,000). However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per Rule 2A (ii) (A) of Service Tax (Determination of Value) Rules, 2006 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. However, since exemption has been granted by the Notification No. 26/2012-ST is 75% of the amount charged or 70% of the amount charged you can avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the most beneficial provision X X X X Extracts X X X X X X X X Extracts X X X X
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