Abatement rate in service tax

Transport of passengers by Air – Hitherto, an abatement of 60% was provided on taxable services of transport of passengers by air (with or without accompanied belongings). The said abatement continues for economy class travel and in case of other than economy class the abatement has been reduced to 40%. service tax rate chart for fy 2016-17 with service tax rate 14.5% upto 1st june 2016; service tax abatement chart for fy 2016-2017 ay 2017-2018; change in exemptions from service tax from 1st april, 2016; new service tax rate chart for fy 2016-17 with service tax rate 15% from 1st june 2016 ABATEMENT RATE CHART UNDER SERVICE TAX S.N Service Taxable Condition 1 Goods Transport Agency (GTA) (any person who pays or is liabl eto pay fre g ht r hims l through his agent for the transportation of such goods by road in a goods carriage) Provided that when such person is located in a non- taxable territory, the provider of such service shall be liable to pay service tax. In old system in case of specific services deductions are allowed from gross receipt received from customer to get the taxable service value. This deduction is called abatement in service tax.This has been continued in new system also but with revised rate of abatement. Renting of hotels, inns etc.- 60% taxable. Abatement of 40%. Renting of hotels, inns, guest house , clubs, , campsites or other commercial places meant for residential or lodging purpose would get the abatement of 40%. It should be noted that abatement is available only to the specified immovable properties. Abatement, Composite Rate of Tax, and Valuation Scheme for specified services : Home List Manuals Service Tax Manual Abatement, Composite Rate of Tax, and Valuation Scheme for specified services This Abatement, Composite Rate of Tax, and Valuation Scheme for specified services We know that the rate of abatement and applicability of RCM (Reverse Charge Mechanism) play an important role while making payment of service tax to vendor and payment of service tax under RCM. In the article we have compiled all the provisions and notifications applicable for Abatement on service tax and Reverse charge mechanism.

By: Mr. M. GOVINDARAJAN - April 12, 2016 Discussions to this article . Sir. can you please clarify that in case of Abatement how much benefit of Input services is allowed, e.g. In case of Restraunt the service tax is 5.80% and can the service provider take full credit of service tax paid on Rental for the premises of Restraunts.

1 Jun 2016 Name of Service, Abatement Rate, Taxable Rate, Effective Rate of Service Tax. Goods Transport Agency (Road). Normal Cases, 70.0%, 30% Rate of Tax. Accounting Code. Service Tax. 10% of the value of services Goods transport agency-Abatement of 75% -Withdrawal of letter confirmed.-. Several

19 May 2016 Effective from 01.04.2016, a uniform abatement at the rate of 70% is prescribed for services of construction of complex, building, civil structure, or

Understand about what is service tax in India, relevant sections, calculation of service tax, applicable rate, service tax return & payment due date. Visit us The Finance Act has also provided abatement on certain specified services. Services The Goods and Service Tax (GST) has been launched in the country w.e.f. (ii) i Under service tax regime due to abatement rate of service tax on work. An abatement scheme also has been provided for; vide notification no. 01/2006 ibid. Abatement at the prescribed rates is allowed in respect of services specified

We know that the rate of abatement and applicability of RCM (Reverse Charge Mechanism) play an important role while making payment of service tax to vendor and payment of service tax under RCM. In the article we have compiled all the provisions and notifications applicable for Abatement on service tax and Reverse charge mechanism.

Abatement % Taxable % Conditions. 5 as the service tax) at the rate of twelve per cent on the value of all The rate of service tax, value of a taxable service. The service tax is on “Goods transport Agency” and “courier service” only. abatement @ 75 per cent vide Notification No.26/2012-ST dated 20.6.2012.

In old system in case of specific services deductions are allowed from gross receipt received from customer to get the taxable service value. This deduction is called abatement in service tax.This has been continued in new system also but with revised rate of abatement.

3 Mar 2016 Insertion of Explanation 'BA' after paragraph B At present, there is abatement of 60% on the gross value of renting of motor-cab services, after deducting the abatement percentage (i.e. part of tax is exempted), whereas, an optional composition scheme is provided in a situation where it is not easy 1 Jun 2016 Name of Service, Abatement Rate, Taxable Rate, Effective Rate of Service Tax. Goods Transport Agency (Road). Normal Cases, 70.0%, 30% Rate of Tax. Accounting Code. Service Tax. 10% of the value of services Goods transport agency-Abatement of 75% -Withdrawal of letter confirmed.-. Several Service Tax is levied on Under Construction Property @3.75% of Purchase Service Tax on Construction is liable to be paid as per the Service Tax Rates in force. of services separately, the Govt issues an Abatement scheme wherein tax is