<h1>Chit Fund Service Providers Get 30% Tax Abatement, Pay Tax on 70% of Commission Without CENVAT Credit.</h1> The Central Government has amended the notification regarding service tax on chit funds, allowing an abatement in lieu of CENVAT Credit. Under this amendment, providers of chit fund services, categorized under 'banking and other financial services,' can opt for a 30% abatement on the commission earned. Consequently, they are required to pay service tax on 70% of the commission without availing input credit under the CENVAT Credit Scheme. This decision follows a request from the All India Association of Chit Funds and recommendations from the Advisory Committee on Service Tax Abatements.