Abatement on New construction/Repair work

[SHIVKUMAR SHARMA]

Dear Experts

Pls.help me in the following issue :

1.How much abatement will be available for  New Civil construction of factory building on our own land.

2.How much abatement available on Repair/renovation of  our Plant building under the head Works contract  service.

Pls.quote service tax notification Number for above refrence

​Thanks.

AI Summary

Service Tax Abatement: 60% for New Construction, 30% for Repairs; Reverse Charge for Individual Providers to Corporates A query was raised about service tax abatement for new construction and repair work under works contract services. One response indicated a 60% abatement for original construction works, with service tax on the remaining 40%. For repairs, a 30% abatement applies, with tax on 70%. The reverse charge mechanism applies if the service provider is an individual or similar entity and the receiver is a corporate body. Another response discussed the arrangement between service provider and receiver, focusing on the service portion of the invoice when materials are provided by the receiver, questioning its classification as a works contract.