ABATEMENTS UNDER SERVICE TAX

Dear Professional Colleagues

Please find list of abatements under service tax till 22.04.2015. Hope the information will assist you in your Professional endeavours. 

Sr. No.	Description of taxable service	Abatement %	Taxable %	Conditions
(1)	(2)		(4)	(5)
1a	Services in relation to financial leasing including hire purchase	90%	10%	Nil
1b	Services by a tour operation in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour			(i) CENVAT credit on inputs, capital good 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 challan issued 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.
2a	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.
2b.	Services by a tour operator in relation to a package tour			(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.
2c.	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. (a) For a residential unit satisfying both the following conditions, namely: (i) The carpet area of unit is less than 2000 square feet, and (ii) The amount charged for unit is less than rupees one crore			(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The value of land is included in the amount charged from the service receiver.
3a	b) For other than (2c) above	70%	30%	- do -
3b	Transport of goods by rail			NIL
3c	Transport of passengers, with or without accompanied belongings by rail
4	Transport of passengers with or without accompanied belongings by air.	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.
4b	Renting of any motor vehicle designed to carry passengers			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.
4c	Services by a tour operator in relation to: Any services other than specified in (2b) and  (1b) above			(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.
5	Transport of goods in a vessel.	50%	50%	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.
6	Renting of hotels, inns, guest houses, clubs, campsites or other commercial places mean for residential or lodging purposes.	40%	60%	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.
7	Bundled services 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 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.
7b	Services provided in relation to chit			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.

Thanks

CS Nikhil Kalra