We do interior work for corporates, but no designing - only the work which involves flooring, plastering, painting, furniture, electricals, networking, air-conditioning etc.
While Interior Decorator service was not applicable to us, we apparently came under service net w.e.f. 16.6.05 under Commercial Construction Service under Completion & Finishing Services. As per Notification no.1/2006 for Abatement of 67% completion & finishing services has been excluded that means we have to take exepmtion under notification no.12/2003 & 12/2004 for value of materials - Query is how does one arrive at 'Value of Materials' ?? While there is specific method for 'value of materials' under Works Contract same is not there under CCS.
Secondly, w.e.f.1.6.07 we seem to be more applicable under Works COntract Service. The Dept.says that since we are not registered under Works Contract we cannot file Return under that category and that Penalty for delay in Endorsement/Amendment in Registration is same as Penalty for delay in Registration i.e.Rs.200/- per day - which does not seem correct. Can someone please give the correct picture as to what the dept.can do ??
We have recently filed Return under CCS for Fy 2006-07, 07-08 & 08-09 by wrongly taking abatement & also input creidt for services. We now want to revise under CCS or Works Contract by taking exemption for materials under Not.no.12/2003 & 12/2004 and taking service tax input.
What stand should be taken for Revised Service Tax Return.??
Regards
Rajesh Narayan, CA
CAclubindia
