service tax liability of builder if contractor if appointed

[SUSHIL MODAK]

My cliient who has builder has appointed contractor for construction of building work @ Rs. 1200/- per sq.ft . in this  case whether builder has to recover service tax from flat owner at what rate further whether he can get CENVAT

credit for service tax bill raised by contractor?

[YAGAY and SUN]

Service Tax can be charged under construction of Commercial Complex or under Works Contract Category depending on the nature of contract.  Rate would prebudget 10.30% net of abatement and 12.36% net of abatement post budget.  Under Works contract service prebudget 4% and after budget 4.8%

CENVAT credit on civil structure is not allowed.

AI Summary

Service tax on construction applies under commercial complex or works contract; CENVAT credit not available for civil structure. Construction services by a contractor for a builder fall under either Construction of Commercial Complex or Works Contract depending on the contract, with distinct abatement-adjusted service tax rates stated for each classification; CENVAT credit on the civil structure is not allowable.