TaxTMI 
TaxTMI 
Respected all,
Please tell me the Meaning & their difference of Reverses Charge & Abatement in Services Tax.
Please tell me with an example.
Thanks & Regards
Reverses Charge & Abatement in Services Tax
19 Jun 2013 
2 Replies 
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Reverse charge determines which party deposits service tax, while abatement reduces the taxable value on which tax is computed.
Reverse charge reallocates the obligation to deposit service tax to the recipient or other notified person and may split liability between provider and recipient by notification, without changing the taxable value. Abatement permits a specified reduction from the gross amount to determine taxable value, thereby reducing the tax base and tax payable, but it does not affect which party must remit the tax. (AI Summary)
Reverse charge reallocates the obligation to deposit service tax to the recipient or other notified person and may split liability between provider and recipient by notification, without changing the taxable value. Abatement permits a specified reduction from the gross amount to determine taxable value, thereby reducing the tax base and tax payable, but it does not affect which party must remit the tax. (AI Summary)