Event management services

[pradeep gupta]

Dear Sir,

I introduced myself , pradeep kumar gupta, a ca final year student.

Sir i need your help regarding service tax in respect of Event management services.

Sir i want to know that is there any abatement is available to Event management service provider (its a company).

If in the previous year (2009-10), we were paying service tax @10.3% and claiming CENVAT CREDIT. Can we claim any abatement in the current year (2010-11) as we dont have any CENVAT CREDIT in this year and also not having any opening balance in this regard.

 I have also go through the following notifications, but we are also not covered in this criteria:-

Notification No. 10/2004-ST dated 9-7-2004 provides abatement in respect of taxable services in relation to holding of a convention where services provided include catering services. The abatement from service tax is allowed as is in excess of 60 per cent of the taxable value, i.e., an abatement of 40 percent. This exemption would be available only when convention services are provided including catering services (supply of substantial and satisfying meals) and gross amount includes catering charges

This has since been rescinded w.e.f. 1-3-2006 by Notification No. 2/2006-ST dated 1-3-2006 and a new Notification No. 1/2006-ST dated 1-3-2006 issued to the same effect.

Specific Exemption

40 percent abatement is provided to convention services where services include catering services and gross amount includes catering charges (vide Notification No. 10/2004-ST dated 9-7-2004). This notification stands rescinded w.e.f. 1-3-2006 vide Notification No. 2/2006-ST

Notification No. 10/2004-ST dated 9-7-2004 provides abatement in respect of taxable services in relation to holding of a convention where services provided include catering services. The abatement from service tax is allowed as is in excess of 60 per cent of the taxable value, i.e., an abatement of 40 percent. This exemption would be available only when convention services are provided including catering services (supply of substantial and satisfying meals) and gross amount includes catering charges

This has since been rescinded w.e.f. 1-3-2006 by Notification No. 2/2006-ST dated 1-3-2006 and a new Notification No. 1/2006-ST dated 1-3-2006 issued to the same effect.

Specific Exemption

40 percent abatement is provided to convention services where services include catering services and gross amount includes catering charges (vide Notification No. 10/2004-ST dated 9-7-2004). This notification stands rescinded w.e.f. 1-3-2006 vide Notification No. 2/2006-ST dated 1-3-2006; Restored back by Notification No. 1/2006-ST dated 1-3-2006.

 dated 1-3-2006; Restored back by Notification No. 1/2006-ST dated 1-3-2006.

 Is there any way to reduce our tax liabilty.

Sir please do the needful at the earliest.

Thanks with Regards

Pradeep Kumar Gupta

+91-8431232727

[Rama Krishana]

As per the scheme of notification no. 1/2006 as stated by you while availing the benefit of abatement, you can not avail cenvat credit.

In your case, you were availing cenvat credit in the previous year while paying full tax is no bar in changing the scheme in the current or subsequent year. 

Now onwards, you may follow the scheme of notification no. 1/2006 and not to avail cenvat credit. 

AI Summary

Abatement for event management services prohibits claiming CENVAT credit when the abatement scheme is elected, allowing later change of scheme. When a service provider elects the abatement scheme for event management or convention services, the provider may not avail CENVAT credit for those services; prior use of CENVAT credit while paying full tax does not bar switching to the abatement scheme in a later period, but upon switching the provider must stop claiming input credit and compute tax liability under the notification's terms.