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

Abatement on works contract service reduces taxable value for new construction and repairs; reverse charge applies in certain provider-receiver arrangements.
Abatement for works contract services adjusts the taxable value: original works (new construction) receive a larger abatement, repair/renovation services receive a smaller abatement when materials are involved, and pure labour/supervision services are taxed at full value. Reverse charge applies where providers are individuals/HUFs/AOPs/partnerships and the receiver is a body corporate; apply the Determination of Value rules to classify the service and compute the taxable base.