Service tax on work Contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2010

Please confirn that abatement of 67% has beeb changed to 75% on construction contract.Please Provide Notification no & Date

FM’s announces Relief Package consisting fresh Tax Sops-2010

The construction sector has requested for a review of the changes in the service tax law proposed in this year’s Budget. Several suggestions have been made by the trade associations. Considering all the inputs, I propose to provide tax relief to this sector by enhancing their rate of abatement from 67% to 75% of the gross value where such value includes the value of the land constructed upon. Certain procedural bottlenecks relating to the completion certificate prescribed in the law would also be simplified.

The above changes relating to construction sector would be effective from a notified date after enactment of the Finance Bill, 2010.

Guest

Guest (Expert)

14 June 2010 Finance Act, 2010 has not come in to effect as same is yet to be notified. Similarly, exemption notification is also not yet issued.