ultragaurav (Chartered Accountant ) (200 Points)
02 February 2016One of Pvt Company received Sub contract from Pvt Company for Works contract of Flooring/POp/Colour/furniture & Finishing of Hotel building with material. Now Question is about abatement to be allowed 30% or 60%?
Ajay Chandramouli
(Article Assistant )
(334 Points)
Replied 02 February 2016
Dear Mr CA Gaurav
Answer to your query lies in Expalantion 1 to the Rule 2A of Service Tax (Determination of Value) Rules, 2006 – Valuation Rules
"Original works" means-
(i) all new constructions; (ii) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether prefabricated or otherwise;
Other than above falls under Othe category for example which includes i) Maintenance or repair or reconditioning or restoration or servicing of any goods; or (ii) Maintenance or repair or completion and finishing services such as glazing or plastering or floor and wall tiling or installation of electrical fittings of immovable property.
In my view your company is providing Finishing works and abatement is 30%. Hope it is clear
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 02 February 2016
Agree with Mr. Ajay
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
