Erection commissioning & Installation abatement theereof- Reg

[onkar kumar]

Dear members, I have a query as under 

The 67% abatement on services of Erection, commissioning & Installation is no more after 01.07.12 and the said service are covered under  'work contract Service' and Notification No.24/2012-Service Tax  dtd.6.6.2012 explaining the provisions of calculation of service tax on works contract is applicable now. Original works and will be entitled to 60% abatement and non original works to 40% abatement. However, Cenvat credit of input services and capital goods is available.

My question is whether the new provision will be applicable also in case where work was started much before 01.07.12 and is continuous at present.

Pl Clarify me.

Thank You

[MANDAVILLI RAMAKRISHNA]

i think you have mistaken. erection and commissioning services is still there and can be considered as works contract only for the purpose of getting exemption for which the main contractor is eligible.

AI Summary

Erection and commissioning services treated as works contract affecting abatement entitlement and Cenvat credit availability. Erection, commissioning and installation activities are treated under the works contract framework for service tax calculation, with differentiated abatement for original and non original works and Cenvat credit available for input services and capital goods; for purposes of exemption or abatement of the main contractor these activities are to be considered as works contract even where they continue from work started earlier.