1)      Complex Construction without owning Land

One of our clients is developer of Residential Building on the land registered in the name of Society.

He was claiming 67% abatement under Notification No. 1/2006. But, now in New Notification 26/2012 there is abatement is available only to those who has own Land. So, now how should we calculate Valuation for the purpose of Service tax?

2)      Repair & Maintenance Services

One of our clients is providing services for Commissioning and erecting of Mobile towers.

He was claiming 67% abatement under Notification No. 1/2006. But, now in New Notification 26/2012 there is no abatement is available for same services. So, now how should we calculate Valuation for the purpose of Service tax?

Thanks in Advance….

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sir answers to your queries are as follows:

1) Still activity construed to be a service as per definition given in section 65B(44). There may be two cases either pure labour or Labour + Material i.e. works contract.

If your client is providing normal pure labour service, then service tax shall be levialble on entire value. otherwise valuation shall be done as per rule 2A of service tax valuation rules, which states two methods either actual service portion or 40% of gross receipts shall be deemed as value of service provided.