TMI BlogConstruction of single residential unit - No mega exemptionX X X X Extracts X X X X X X X X Extracts X X X X ..... I have a doubt on service tax exemption on construction of single residential unit. If a contractor is doing solely painting work (a painting contractor), he is not eligible to take exemption mentioned in serial no 14 of mega exemption because of the following reasons. Serial number 14 of mega exemptions says, Services by way of construction, erection, commissioning or installation of o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal works pertaining to (b) a single residential unit otherwise than as a part of residential complex Serial No. 14, is different from serial no 12, 12A and 13. In Serial number 12,12A and 13 the words completion, fitting out, repairs, maintenance, renovation or alteration of is there, which is missing in Serial No 14. Since painting work (Whether in the nature of work contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or pure labour charge) is a completion work, we can say that, it is not eligible for mega exemption under serial number 14, even if it is rendered for single residential unit. Mega exemption serial number 14 says Construction of original works . Definition is given for Original works in Mega exemptions notification. It is says For the purpose of this notification, unless the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntext otherwise requires ..(y) Original work means has the same meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006 Service Tax (Determination of Value) Rules 2006, under Rule 2A says how to determine the value of services involved in the execution of a work contract. And in simplified scheme, it says, Value of service portion as 40% of total a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount charged in the case of original works Value of service portion as 70% for other than original works including among other things completion and finishing services . So completion and finishing service under any circumstances, whether it is for new construction project or or in relation of repairs or maintenance, is not original work. So no mega exemption benefit. My question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A contractor has taken contract for construction of single residential unit. He will do the following works Earth work excavation, Foundation, Basement, Superstructure, Roofing, Partition walls, Flooring, tiling, Plastering, Steel Reinforcement, Painting. That is he is doing full work from basement to completion/finishing. This is a single contract. On reading of difference between seria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l no (12,12A and 13) and 14 + meaning of original work, it is not possible to take benefit of mega exemption notification14 on completion and finishing part of full contract value by the contractor who has taken full contract for construction of single residential unit. From which stage, completion and finishing to be reckoned. There is no definition for completion and finishing work. Pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ease advise. Regards Siva - Reply By KASTURI SETHI - The Reply = Sh.Siva Ji, You have no link with 12, 12 A, 13 of Notification No.25/12-ST as amended. Your query pertains to Serial No.14. In serial no 14 there is no exemption for completion, fitting out, repair, maintenance, renovation, or alteration b ut if contract is for all activities leading to full single residential unit e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption is available.These bold/underlined activities implies for pure labour and pure labour is out of WCS. - Reply By YAGAY AND SUN - The Reply = We endorse the view of Kasturi Sir. - Construction of single residential unit - No mega exemption - Query Started By: - Siva Rama Dated:- 19-1-2017 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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