{"id":277,"date":"2014-11-10T00:00:00","date_gmt":"2014-11-09T18:30:00","guid":{"rendered":""},"modified":"2016-07-29T14:12:49","modified_gmt":"2016-07-29T08:42:49","slug":"abatement-chart-under-service-tax-2","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/services-tax\/abatement-chart-under-service-tax-2\/","title":{"rendered":"Abatement chart under service tax"},"content":{"rendered":"

Abatement means reduction or decrease of amount from taxable value of services. Service provider has to pay service tax after arriving at appropriate value of service as per section 67 of Finance Act, 1994 read with the Service Tax (Determination of Value) Rules, 2006. The Government can provide for reduction in the value of any service either completely or up to a certain limit. Such reductions or partial exemptions are provided subject to certain conditions and made known to everybody involved by way of notifications, popularly known as abatement notifications.<\/p>\n

Notification No. 26\/2012-ST, dated 20\/06\/2012 <\/a>provides a list of different percentage on 12 different services. Cenvat credit on input services received or capital goods brought in has also been allowed. However in respect of some services, abatement is provided only if cenvat credit is not availed of input services received and\/or input credit on capital goods is not taken.<\/p>\n

Abatement will be allowed at the following rates for the following services on the levy of service tax; i.e. Service tax will be charged on the balance value after abatement.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Sr. No.<\/strong><\/td>\nDescription of
\nTaxable Service<\/strong><\/td>\n		\n

Abatement<\/strong><\/p>\n

Value<\/strong><\/td>\n

Taxable Value<\/strong><\/td>\nConditions <\/strong><\/td>\n<\/tr>\n
1<\/td>\nFinancial leasing and Hire purchase<\/td>\n90%<\/td>\n10%<\/td>\nNo Condition<\/td>\n<\/tr>\n
2<\/td>\nTransport of goods by rail<\/td>\n70%<\/td>\n30%<\/td>\nNo condition<\/td>\n<\/tr>\n
3<\/td>\nTransport of passengers, with\u00a0\u00a0or without
\naccompanied belongings by rail<\/td>\n		70%<\/td>\n30%<\/td>\nNo Condition<\/td>\n<\/tr>\n
4<\/td>\nBundled service by way of supply of food or any other
\narticle of human consumption or any drink, in a premises
\n(\u00a0\u00a0\u00a0including hotel, convention center, club,\u00a0pandal, shamiana\u00a0or
\nany other place, specially arranged for organizing a function) together with
\nrenting of such premises<\/td>\n		30%<\/td>\n70%<\/td>\nCENVAT credit on any goods classifiable under Chapters 1 to 22
\nof the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the
\ntaxable service, has not been taken under the provisions of the CENVAT Credit
\nRules, 2004.<\/td>\n<\/tr>\n
5<\/td>\nTransport
\nof passengers by air, with or without accompanied belongings<\/td>\n		60%<\/td>\n40%<\/td>\nCENVAT credit on inputs and capital goods, used for providing
\nthe taxable service, has not been taken under the provisions of the CENVAT
\nCredit Rules, 2004<\/td>\n<\/tr>\n
6<\/td>\nRenting of hotels, inns, guest houses, clubs, campsites or other
\ncommercial places meant for residential or lodging purposes<\/td>\n		40%<\/td>\n60%<\/td>\nCENVAT credit on inputs and capital goods, used for providing
\nthe taxable service, has not been taken under the provisions of the CENVAT
\nCredit Rules, 2004<\/td>\n<\/tr>\n
7<\/td>\nServices of goods transport agency in relation to transportation
\nof goods<\/td>\n		75%<\/td>\n25%<\/td>\nCENVAT credit on inputs, capital goods and input services, used
\nfor providing the taxable service, has not been taken under the provisions of
\nthe CENVAT Credit Rules, 2004.<\/td>\n<\/tr>\n
8<\/td>\nServices
\nprovided in relation to chit<\/td>\n		30%<\/td>\n70%<\/td>\nCENVAT credit on inputs, capital goods and input services, used
\nfor providing the taxable service, has not been taken under the provisions of
\nthe CENVAT Credit Rules, 2004<\/td>\n<\/tr>\n
9<\/td>\nRenting
\nof any motor vehicle designed to carry passengers<\/td>\n		60%<\/td>\n40%<\/td>\nCENVAT credit on inputs, capital goods and input services, used
\nfor providing the taxable service, has not been taken under the provisions of
\nthe CENVAT Credit Rules, 2004<\/td>\n<\/tr>\n
10<\/td>\nTransport
\nof goods in a vessel<\/td>\n		50%<\/td>\n50%<\/td>\nCENVAT credit on inputs, capital goods and input services, used
\nfor providing the taxable service, has not been taken under the provisions of
\nthe CENVAT Credit Rules, 2004<\/td>\n<\/tr>\n
11<\/td>\n\n

Services\u00a0\u00a0by a tour operator in relation to,-<\/p>\n

(i)\u00a0\u00a0a
\npackage tour<\/td>\n

75%<\/td>\n25%<\/td>\n(i)
\nCENVAT credit on inputs, capital goods and input services, used for providing
\nthe taxable service, has not been taken under the provisions of the CENVAT
\nCredit Rules, 2004.<\/p>\n

(ii)
\nThe bill issued for this purpose indicates that it is inclusive of charges
\nfor such a tour.<\/p>\n

 <\/td>\n<\/tr>\n

 <\/td>\n(ii)\u00a0\u00a0a tour, if the tour operator is providing services solely
\nof arranging or booking accommodation for any person in relation to a tour<\/td>\n		90%<\/td>\n10%<\/td>\n(i) CENVAT credit on inputs, capital goods and input
\nservices, used for providing the taxable service, has not been taken under
\nthe provisions of the CENVAT Credit Rules, 2004.<\/p>\n

(ii) The invoice, bill or\u00a0challan\u00a0issued
\nindicates that it is towards the charges for such accommodation.<\/p>\n

(iii)
\nThis exemption shall not apply in such cases where the invoice, bill or challan\u00a0issued
\nby the tour operator, in relation to a tour, only includes the service
\ncharges for arranging or booking accommodation for any person and does not
\ninclude the cost of such accommodation.<\/p>\n

 <\/td>\n<\/tr>\n

 <\/td>\n(iii)\u00a0any\u00a0services other than specified at (i) and (ii)
\nabove.<\/td>\n		60%<\/td>\n40%<\/td>\n(i)
\nCENVAT credit on inputs, capital goods and input services, used for providing
\nthe taxable service, has not been taken under the provisions of the CENVAT
\nCredit Rules, 2004.<\/p>\n

(ii)The
\nbill issued indicates that the amount charged in the bill is the gross amount
\ncharged for such a tour.<\/td>\n<\/tr>\n

12<\/td>\nConstruction of a complex,
\nbuilding, civil structure or a part thereof, intended for a sale to a buyer,
\nwholly or partly except where entire consideration is received after issuance
\nof completion certificate by the competent authority<\/td>\n		75%<\/td>\n25%<\/td>\n(i)
\nCENVAT credit on inputs used for providing the taxable service has not been
\ntaken under the provisions of the CENVAT Credit Rules, 2004.<\/p>\n

(ii)The
\nvalue of land is included in the amount charged from the service receiver.<\/p>\n

 <\/td>\n<\/tr>\n

 <\/td>\na.
\nResidential properties having a carpet area above 2000 sq ft and where amount
\ncharged is equal to or more than Rs. 1 crore,<\/p>\n

b. Commercial properties.<\/td>\n

70%<\/td>\n30%<\/td>\n(i)
\nCENVAT credit on inputs used for providing the taxable service has not been
\ntaken under the provisions of the CENVAT Credit Rules, 2004.<\/p>\n

(ii)The
\nvalue of land is included in the amount charged from the service receiver. (Applicable
\nw. e. f. -01\/03\/2013)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

We can see from the above table that, abatement has not been uniformly allowed for all types of services. Also, cenvat credit has been fully allowed for some types of services and partially allowed in some types services and for some services, abatement is provided only if cenvat credit is not taken.<\/p>\n","protected":false},"excerpt":{"rendered":"

Abatement means reduction or decrease of amount from taxable value of services. Service provider has to pay service tax after arriving at appropriate value of service as per section 67 of Finance Act, 1994 read with the Service Tax (Determination of Value) Rules, 2006. The Government can provide for reduction in the value of any … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[96],"yoast_head":"\nAbatement chart under service tax - All About Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxclick.org\/type\/services-tax\/abatement-chart-under-service-tax-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Abatement chart under service tax - All About Finance\" \/>\n<meta property=\"og:description\" content=\"Abatement means reduction or decrease of amount from taxable value of services. 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