ABATEMENT ON WORK CONTRACT

[CS RAHUL AGARWAL]

Respected Sir,

Is there abatement in respect of WCT Services ?? I mean whether the abatement of 75% OR 70% (as the case may be) in Sl. No. 12 of NN. 26/2012 would be available to work contractor engage in construction of building /complex under composite contract ?

AI Summary

Abatement for construction services clarified: works contracts qualify only when land value included and notification conditions met.
Abatement for construction of a complex or building applies only if the notification's operative conditions are met, notably that the value charged includes land and no CENVAT credit on inputs has been taken. Works contracts are within the definition where transfer of property in goods is leviable as sale, but if the notification conditions are not satisfied the valuation rules for works contracts govern the taxable value.