TaxTMI 
TaxTMI 
Rationalization of Abatements
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....ationalization of Abatements<br> Query (Issue) Started By: - Admin TMI Dated:- 1-3-2015 Last Reply Date:- 1-3-2015 Service Tax<br>Got 1 Reply<br>Service Tax<br>Question - What are amendments proposed in Abatements in service tax in Finance Bill 2015 ? Reply By Admin TMI: The Reply: Rationalization of Abatements: • At present, service tax is payable on 30% of the value of rail transpor....
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....t for goods and passengers, 25% of the value of goods transport by road provided by a goods transport agency and 40% for goods transport by vessels. The conditions also vary. A uniform abatement is now being prescribed for transport by rail, road and vessel. Service Tax shall be payable on 30% of the value of such services subject to a uniform condition of non-availment of Cenvat Credi....
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....t on inputs, capital goods and input services. • At present, Service Tax is payable on 40% of the value of air transport of passenger for economy as well as higher classes, e.g. business class. The abatement for classes other than economy is being reduced and service tax would be payable on 60% of the value of such higher classes. • Abatement is being withdrawn from chit fund s....
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....ervice. Consequently, Service Tax shall be paid by the chit fund foremen at full consideration received by way of fee, commission or any such amount. They would be entitled to take Cenvat Credit. The proposed rationalization in abatements shall come into effect from the 1st day of April, 2015.<br> Discussion Forum - Knowledge Sharing ....