SERVICE TAX on construction industry by g. natarajan advocate, swamy associates

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SERVICE TAXon construction
industrybyg. natarajan advocate, swamy
associates
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Commercial or industrialconstruction service

• 10.09.2004.

• Primary use for commerce /
• industry (NCC-GWSSB 2010-tiol-789).

• Exclusion for roads, airports
• railways, transport terminals,
• bridges, tunnels dams.

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Commercial or industrialconstruction service

• Circular No.116/10/2009 Dt.
• 15.09.2009.

• Abatement.
• Notification 15/2004 1/2006

• Extended to finishing services
• w.e.f. 16.06.2005. No abatement.

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Commercial or industrialconstruction service.

• Explanation. - For the purposes of this
  notification,
• the gross amount charged shall include the
  value of
• goods and materials supplied or provided or
  used
• by the provider of the construction service
  for
• providing such service.

• Cemex Engineers Vs CCE
• 2010 (17) STR 534.
• Jaihind Projects 2010-TIOL-124.

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Site formation service

• 16.06.2005.

• site formation and clearance, excavation and
  earthmoving and
• demolition includes,
• drilling, boring and core extraction services for
  construction,
• geophysical, geological or similar purposes
  or
• (ii) soil stabilization or
• (iii) horizontal drilling for the passage of
  cables or drain pipes or
• (iv) land reclamation work or
• (v) contaminated top soil stripping work or
• (vi) demolition and wrecking of building,
  structure or road,
• but does not include such services provided in
  relation to agriculture, irrigation,
• watershed development and drilling, digging,
  repairing, renovating or
• restoring of water sources or water bodies.

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Site formation service.

• No abatement.

• Exclusion for roads, airports
• railways, transport terminals,
• bridges, tunnels dams.

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Construction of residential complex service

• 16.06.2005.

• More than 12 units.

• Exclusion for personal use.

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Construction of residential complex service

• Circular 108/2/2009 Dt. 29.01.2009.

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Agreement to sell and execution of sale
deed. SELF SERVICE Magus Constructions (P)
Ltd. 2008 (11) STR UOI.
Sale of UDS and Construction agreement. PERSONAL
USE
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Construction of residential complex service...

• Abatement.
• Notification 18/2005 1/2006

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Works Contract service

• 01.06.2007.

• Specified Works Contracts.
• - erection, commissioning installation.
• - commercial or industrial construction.
• - construction of residential complex.
• - finishing / repair of the above.
• - turnkey projects / EPC contracts.
• (Circular No. 116/10/2009 Dt.
  15.09.2009)

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Works Contract service

• Composition scheme
• Non Composition scheme and
• valuation therefor.

• Cenvat Credit.

• Value of free supplies
• Notification 23/2009 Dt. 07.07.09.

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Works Contract service

• Ongoing contracts switchover
• Circular 98/1/2008 Dt. 01.01.2008
• NCC Vs UOI 2010-TIOL-403-HC.

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Works Contract service.

• Diebold Vs CCE 2008 (9) STR 546.
• Soma Enterprises Vs CCE
• 2009 (15) STR 559.

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Amendment in Budget 2010-11
Section 65 (105) (zzq) (zzzh). Explanation
For the purposes of this sub-clause, construction
of a new building / complex, which is intended
for sale, wholly or partly, by a builder or any
person authorised by the builder before, during
or after construction (except in cases for which
no sum is received from or on behalf of the
prospective buyer by the builder or a person
authorised by the builder before the grant of
completion certificate by the authority
competent to issue such certificate under any law
for the time Being in force) shall be deemed to
be service provided by the builder to the buyer.
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Amendment in Budget 2010-11.

• No amendment in WCS!

• 75 abatement for whom?

• How can land value be included?

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