Rationalization of Abatements

[Admin TMI]

Question - What are amendments proposed in Abatements in service tax in Finance Bill 2015 ?

AI Summary

Finance Bill 2015: Service Tax Changes in Transport and Chit Fund Services; New Abatement Rules Effective April 1 The discussion addresses amendments in service tax abatements proposed in the Finance Bill 2015. A uniform abatement is introduced for transport services by rail, road, and vessel, with service tax payable on 30% of the value, provided Cenvat Credit is not availed. For air transport, the abatement for non-economy classes is reduced, requiring service tax on 60% of the value. Abatement for chit fund services is withdrawn, mandating full service tax payment, but allowing Cenvat Credit. These changes are effective from April 1, 2015.