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of <h1>Central Government exempts 67% of service tax for residential construction services under Finance Act, 1994, effective June 16, 2005.</h1> The Central Government, under the Finance Act, 1994, exempts 67% of the service tax for services related to the construction of residential complexes, effective June 16, 2005. This exemption applies only to the service tax calculated on 33% of the gross amount charged. It excludes cases where CENVAT credit is availed, benefits under a specific 2003 notification are taken, or services provided are only for completion and finishing. The 'gross amount charged' includes the value of goods and materials used. This notification was later rescinded by Notification No. 2/2006 on March 1, 2006.
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