Abatement can be claimed by service receiver

[Krishan Gopal]

Dear Sir,

Please clear the confusion over abatement (Notification no 26/2012-ST) that service receiver can claim abatement under reverse charges as above notification  said only for service provider.

Regards,

K.Gopal-9911052902

[Brijesh Verma]

The Notification no 26/2012 [abatement notification] is not confined only to service provider. It simply provides a means of calculation of liability. Abatement is very well available to service receiver under RCM.

AI Summary

Abatement under reverse charge allows service recipients to reduce taxable value when computing service tax liability.
Abatement operates as a method for calculating the taxable value of a service and is not confined to the service provider; a service recipient liable under the reverse charge mechanism may apply the abatement when computing taxable value.