However, for residential unit having carpet area upto 2000 square feet or where the amount charged is less than rupees one crore, abatement was continue to be 75%, i.e. effective rate of service tax remained 3.09%.
Issue: Language of serial no. 12 of notification 26/2012 dated 20/06/2012 (as amended by notification no. 2/2013) dated 01/03/2013 was not clear and it could be interpreted to mean that abatement of 75% shall be available even if one of the following condition is satisfied.
- For residential unit having carpet area upto 2000 square feet; or
- where the amount charged is less than rupees on crore
Serial no. 12 of Notification No.26/2012 as applicable during 01.03.2013 to 07.05.2013:
- It should be a residential property;
- Carpet area of unit is less than 2000 sq feet; and
- the amount charged for the unit is less than rupees one crore.