Abatement Rates on various services

In case of some services e.g. catering services, mandap keeper services and construction Services, service tax is payable at lower rates, i.e. partial abatement is available from gross value, vide 1/2006-ST dated 1-3-2006. The  lower rate is applicable if the service provider does not avail Cenvat credit of duty/tax on inputs, input services and capital goods. Till 28-2-2006, he was entitled to avail Cenvat credit on input services. W.e.f. 1-3-2006, he cannot avail any Cenvat credit, if he avails the partial abatement.

Sr No. Taxable service % Abatement % taxable Conditions
1 Services in relation to financial leasing including hire purchase 90 10 NA
2 Transport of goods by rail 70 30 NA
3 Transport of passengers, with  or without accompanied belongings by rail 70 30 NA
4 Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (   including hotel, convention center, club, pandal,shamiana or any other place, specially arranged for organizing a function) together with renting of such premises 30 70 (i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5 Transport of passengers by air, with or without accompanied belongings 60 40 CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. 40 60 same as above
7 Services of goods transport agency in relation to transportation of goods. 75 25 CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
8 Services provided in relation to chit 30 70 same as above
9 Renting of any motor vehicle designed to carry passengers 60 40 same as above
10 Transport of goods in a vessel 50 50 same as above
11 Services  by a tour operator in relation to,- (i)  a package tour 75 25 (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
12 (ii)  a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour 90 10 (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.
(iii) This exemption shall not apply in such cases where the invoice, bill or challanissued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
13 (iii) any services other than specified at (i) and (ii) above. 60 40 (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
14 Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority 75 25 (i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2
a. Residential properties having a carpet area above 2000 sq ft and where amount charged is equal to or more than Rs. 1 crore, b. Commercial properties. (ii)The value of land is included in the   amount charged from the service receiver.
same two conditions above
(Notification No. 02/2013-ST dated 1st March, 2013 applicable wef 01.03.13)

 

Sr No. Taxable service % Abatement % taxabl e Conditions
1 Services in relation to financial leasing including hire purchase 90 10 NA
2 Transport of goods by rail 70 30 NA
3 Transport of passengers, with  or without accompanied belongings by rail 70 30 NA
4 Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (   including hotel, convention center, club, pandal,shamiana or any other place, specially arranged for organizing a function) together with renting of such premises 30 70 (i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5 Transport of passengers by air, with or without accompanied belongings 60 40 CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. 40 60 same as above
7 Services of goods transport agency in relation to transportation of goods. 75 25 CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
8 Services provided in relation to chit 30 70 same as above
9 Renting of any motor vehicle designed to carry passengers 60 40 same as above
10 Transport of goods in a vessel 50 50 same as above
11 Services  by a tour operator in relation to,- (i)  a package tour 75 25 (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
12 (ii)  a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour 90 10 (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.
(iii) This exemption shall not apply in such cases where the invoice, bill or challanissued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
13 (iii) any services other than specified at (i) and (ii) above. 60 40 (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
14 (ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
15 Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority 75 25 (i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2
a. Residential properties having a carpet area above 2000 sq ft and where amount charged is equal to or more than Rs. 1 crore, b. Commercial properties. (ii)The value of land is included in the   amount charged from the service receiver.
same two conditions above
(Notification No. 02/2013-ST dated 1st March, 2013 applicable wef 01.03.13)

 

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