https://www.taxtmi.com/forum/issue?id=105710 Abatement for passenger transport services means only the balance 40% is taxable while non abated treatment makes 100% taxable. If the provider applies abatement and charges tax only on 40% they cannot take Cenvat input credit; if the provider treats the service as non abated and charges tax on 100% they can take Cenvat input credit. Under the described reverse charge mechanics, a transporter availing input credit charges tax on 60% and the recipient pays tax on 40%, whereas if the transporter does not avail input credit the recipient is described as liable to pay tax on the full value. en-us Wed, 22 May 2013 14:49:11 +0530 Thu, 23 Jan 2025 15:57:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=105710 Abatement for passenger transport services means only the balance 40% is taxable while non abated treatment makes 100% taxable. If the provider applies abatement and charges tax only on 40% they cannot take Cenvat input credit; if the provider treats the service as non abated and charges tax on 100% they can take Cenvat input credit. Under the described reverse charge mechanics, a transporter availing input credit charges tax on 60% and the recipient pays tax on 40%, whereas if the transporter does not avail input credit the recipient is described as liable to pay tax on the full value. Discussion-Forum Service Tax Wed, 22 May 2013 14:49:11 +0530 https://www.taxtmi.com/forum/issue?id=105710