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TaxTMI 
Question - What are amendments proposed in Abatements in service tax in Finance Bill 2015 ?
Rationalization of Abatements
01 Mar 2015 
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Abatement rationalization for transport services leads to uniform taxable value and limits on Cenvat credit availability.
Rationalization of abatements standardises taxable valuation for rail, road goods transport agencies and vessel transport by prescribing a uniform abatement subject to a uniform non-availment condition for Cenvat Credit on inputs, capital goods and input services. The abatement for premium air passenger classes is reduced, increasing the taxable portion, and abatement for chit fund services is withdrawn so chit fund foremen must pay service tax on full consideration but may claim Cenvat Credit. (AI Summary)
Rationalization of abatements standardises taxable valuation for rail, road goods transport agencies and vessel transport by prescribing a uniform abatement subject to a uniform non-availment condition for Cenvat Credit on inputs, capital goods and input services. The abatement for premium air passenger classes is reduced, increasing the taxable portion, and abatement for chit fund services is withdrawn so chit fund foremen must pay service tax on full consideration but may claim Cenvat Credit. (AI Summary)