Proposed changes in abatement shall come into effect from the 1st April 2016. Contained herein detailed revised list of abatement.

Sl. No. Description of taxable service Abatement % Taxable Value % Conditions
1 Services in relation to financial leasing including hire purchase 90 10 Nil.
2 Transport of goods by rail 70 30 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
2A Transport of goods in containers by rail by any person other than Indian Railway 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.

Credit of input services is being allowed for transport of goods in containers by rail by any person other than Indian Railway.

3 Transport of passengers, with or without accompanied belongings by rail 70 30

i) 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.

ii) Cenvat credit on input services shall be allowed

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 (Refer Note-2) 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 in 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.
(i) economy class 60 40
(ii) other than economy class 40 60
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. 70 30 CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004 .
7A Services of goods transport agency in relation to transportation of used household goods. 60 40 CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004 .
8 Services provided in relation to chit 70 30 CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004 .
9 Renting of motorcab (Note 1) 60 40 (i) 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;(ii) CENVAT credit on input service of renting of motorcab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner:

(a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or

(b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value;

(iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

9A Transport of passengers, with or without accompanied belongings, by- a) contract carriage and air conditioned stage carriage other than motorcab. b) a radio taxi. 60 40 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.
10 Transport of goods in a vessel 70  30 i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004.

ii) Cenvat credit on input services is allowed.

11 Services by a tour operator in relation to:- 70 30 (i) 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;(ii) CENVAT credit on input service of renting of motorcab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner:(a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or(b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value;(iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(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 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.
(iii) any services other than specified at (i) and (ii) above. 70 30 (i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, 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.
12 Construction of a complex, building, civilstructure 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,- (i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004;
(a) for a residential unit satisfying both the following conditions, namely:–(i) the carpet area of the unit is less than 2000 square feet; and (ii) the amount charged for the unit is less than rupees one crore; 70 30 (ii) The value of land is included in the amount charged from the service receiver.
(b) for other than the (a) above. 70 30

Note 1:

Insertion of Explanation ‘BA’ after paragraph B: At present, there is abatement of 60% on the gross value of renting of motor-cab services, provided no Cenvat credit has been taken. It is being made clear by way of inserting an explanation that cost of fuel should be included in the consideration charged for providing renting of motor-cab services for availing the abatement.

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5 responses to “Service Tax Abatement Rate Chart from 01.04.2016”

  1. Lalit Nyati says:

    In case of service provided in relation to chit abatement is 30% instead of 70%.

  2. V. K. CHOUDHARY says:

    ST-3 IS NOT PROVIDING OPTION TO SELECT NOTIFICATION 26/2012 FOR CONVENTION SERVICE. PL INTIMATE LATEST IRCULAR/AMENDED NOTIFICATION NUMBER

  3. rkc says:

    please provide the latest notification no.

  4. Asis says:

    Point no 8 abatement to chit fund is 30% and taxable is 70%

  5. Rajiv Agrawal says:

    Is there any abatement on renting of factory & office premises?

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