abatement in service tax

[rohit varshney]

what is the role of abatements in service tax

AI Summary

Service Tax Abatement Simplifies Taxing Invoice Portions Without CENVAT Credit, Balancing Tax Collection and Consumer Relief A discussion on service tax abatement highlights its role in taxing only a portion of the invoice value, provided no CENVAT credit is claimed on inputs or capital goods. Abatements are applied to specific services where value segregation is challenging, offering convenience to assessees and aiming to reduce revenue leakage. The government grants abatements selectively to balance tax collection needs and consumer relief. Participants express gratitude for the insights shared, emphasizing the platform's value in knowledge sharing.