Service Tax Abatement Rate wef 01.04.

2015

Abatement Rate Chart under Service Tax updated 01.04.2015

Sr Description of taxable service Abatemen Taxable Conditions
No. t
1 2 3 4 5
1 Services in relation to financial 90 10 Nil.
leasing including hire purchase
2 Transport of goods by rail 70 30 Nil.
3 Transport of passengers, with or 70 30 Nil.
without accompanied belongings by
rail
4 Bundled service by way of supply 30 70 (i) CENVAT credit on any
of food or any other article of goods classifiable under
human consumption or any drink, in Chapters 1 to 22 of the
a premises ( including hotel, Central Excise Tariff Act,
convention center, club, pandal, 1985 (5 of 1986) used for
shamiana or any other place, providing the taxable service,
specially arranged for organizing a has not been taken under the
function) together with renting of provisions of the CENVAT
such premises Credit Rules, 2004.
5 Transport of passengers by air, with 60 40 CENVAT credit on inputs and
or without accompanied belongings capital goods, used for
(Only for Economy class wef providing the taxable service,
01.04.2015) has not been taken under the
Other than Economy Class (means 40 60 provisions of the CENVAT
business class /First class) wef Credit Rules, 2004.
01.04.2015)

6 Renting of hotels, inns, guest 40 60 Same as above.

houses, clubs, campsites or other
commercial places meant for
residential or lodging purposes.
7 Services of goods transport agency 75 25 CENVAT credit on inputs,
in relation to transportation of capital goods and input
goods. services, used for providing
wef 01.04.2015 70 30 the taxable service, has not
been taken under the
provisions of the CENVAT
Credit Rules, 2004.
8 Services provided in relation to chit 30 70 Same as above.
wef 01.04.2015 0 100 Same as above.
9 Renting of any motor vehicle 60 40 Same as above.
designed to carry passengers
10 Transport of goods in a vessel 60 40 Same as above.
wef 01.04.2015 70 30 Same as above.

Abatement Rate Chart under Service Tax updated 01.04.2015

BY : www.simpletaxindia.net
 Service Tax Abatement Rate wef 01.04.2015
Sr Description of taxable service
No.
11 Services by a tour operator in
relation to,- (i) a package tour
(ii) a tour, if the tour operator is
providing services solely of
arranging or booking
accommodation for any person in
relation to a tour
(iii) any services other than
specified at (i) and (ii) above.
12 Construction of a complex,
building, civil structure or a part
thereof, intended for a sale to a
buyer, wholly or partly except
where entire consideration is
received after issuance of
completion certificate by the
competent authority
a. Residential properties having a
carpet area above 2000 sq ft and
where amount charged is equal to or
more than Rs. 1 crore, b.
Commercial properties.wef
01.03.13
Brief description of amendment in Budget-2015
BY : www.simpletaxindia.net
Abatement Taxable Conditions
75 25 (i) CENVAT :Same as above
(ii) The bill issued for this purpose
indicates that it is inclusive of
charges for such a tour.
90 10 (i) CENVAT :Same as above
(ii) The invoice, bill
or challan issued indicates that it is
towards the charges for such
accommodation.
(iii) This exemption shall not apply in
such cases where the invoice, bill
or challan issued by the tour operator,
in relation to a tour, only includes the
service charges for arranging or
booking accommodation for any
person and does not include the cost
of such accommodation.
60 40 (i) CENVAT credit on inputs,
capital goods and input services,
used for providing the taxable
service, has not been taken under
the provisions of the CENVAT
Credit Rules, 2004.
(ii)The bill issued indicates that
the amount charged in the bill is
the gross amount charged for such
a tour.
75 25 (i) CENVAT credit on inputs used
for providing the taxable service
has not been taken under the
provisions of the CENVAT Credit
Rules, 2004.
(ii)The value of land is included in
the amount charged from the
service receiver.
70 30 (Notification No. 02/2013-ST
dated 1st March, 2013 applicable
wef 01.03.13
 Service Tax Abatement Rate wef 01.04.2015

Uniform Abatement for transport by rail, road and vessel: A uniform

abatement of 70% has been prescribed for transport by rail, road and vessel to
bring parity in these sectors. Service tax shall be payable on 30% of the value of
such service subject to a uniform condition of non-availment of Cenvat credit on
Inputs, Capital goods and Input services.

Presently, Service tax is payable on 30% (in case of rail transport)/ 25% (in case of
road transport)/ 40% (in case of transport by vessels). Further, there is no condition
for availment of Cenvat credit on Inputs, Capital goods and Input services in case
of transport by rail, which is now withdrawn.

· Reduction in abatement for classes other than economy class: The abatement
for classes other than economy class (i.e. business/ first class) has been reduced
from 60% to 40%. Accordingly, Service tax would be payable on 60% of the value
of such higher classes.
At present, Service tax is payable on 40% of the value of transport of passenger by
air for economy as well as higher classes (i.e. business/ first class).

· Abatement in relation to Chit fund withdrawn: Abatement for the services

provided in relation to Chit fund stands withdrawn. Consequently, Service tax shall
be paid by on full consideration received by the foremen of Chit fund.

BY : www.simpletaxindia.net
 Service Tax Abatement Rate wef 01.04.2015

[TO BE PUBLISHED IN THE GAZETTE OF INDIA,

EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 26/2012- Service Tax
New Delhi, the 20th June, 2012
G.S.R….. (E). - In exercise of the powers conferred by sub-section (1) of section 93
of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), and in
supersession of notification number 13/2012- Service Tax, dated the 17 th March, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i) vide number G.S.R. 211 (E), dated the 17 th March, 2012, the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service
of the description specified in column (2) of the Table below, from so much of the service
tax leviable thereon under section 66B of the said Act, as is in excess of the service tax
calculated on a value which is equivalent to a percentage specified in the corresponding entry
in column (3) of the said Table, of the amount charged by such service provider for providing
the said taxable service, unless specified otherwise, subject to the relevant conditions
specified in the corresponding entry in column (4) of the said Table, namely;-
Table

Sl. Description of taxable Percent- Conditions

No. service age
(1) (2) (3)
1 Services in relation to financial 10
leasing including hire purchase
2 Transport of goods by rail 30
3 Transport of passengers, with or 30
without accompanied belongings
by rail
4 Bundled service by way of 70
supply of food or any other
article of human consumption or
any drink, in a premises
( including hotel, convention
center, club, pandal, shamianaor
any other place, specially
arranged for organizing a
function) together with renting of
such premises
5 Transport of passengers by air, 40
with or without accompanied
belongings
6 Renting of hotels, inns, guest 60
houses, clubs, campsites or other
commercial places meant for
(4)
Nil.
Nil.
Nil.
(i) CENVAT credit on any goods
classifiable under Chapters 1 to 22 of the
Central Excise Tariff Act, 1985 (5 of 1986)
used for providing the taxable service, has
not been taken under the provisions of the
CENVAT Credit Rules, 2004.
CENVAT credit on inputs and capital goods,
used for providing the taxable service, has
not been taken under the provisions of the
CENVAT Credit Rules, 2004.
Same as above.

BY : www.simpletaxindia.net
 Service Tax Abatement Rate wef 01.04.2015
residential or lodging purposes.
7 Services of goods transport
agency in relation
transportation of goods.
8 Services provided in relation to
chit
9 Renting of any motor vehicle
designed to carry passengers
10 Transport of goods in a vessel
11 Services by a tour operator in
relation to,-
(i) a package tour
(ii) a tour, if the tour operator is
providing services solely of
arranging or booking
accommodation for any person in
relation to a tour
(iii) any services other
specified at (i) and (ii) above.
BY : www.simpletaxindia.net
25 CENVAT credit on inputs, capital goods and
to input services, used for providing the
taxable service, has not been taken under
the provisions of the CENVAT Credit
Rules, 2004.
70 Same as above.
40 Same as above.
50 Same as above.
25 (i) CENVAT credit on inputs, capital goods
and input services, used for providing the
taxable service, has not been taken under
the provisions of the CENVAT Credit
Rules, 2004.
(ii) The bill issued for this purpose indicates
that it is inclusive of charges for such a tour.
10 (i) CENVAT credit on inputs, capital goods
and input services, used for providing the
taxable service, has not been taken under
the provisions of the CENVAT Credit
Rules, 2004.
(ii) The invoice, bill or challan issued
indicates that it is towards the charges for
such accommodation.
(iii) This exemption shall not apply in such
cases where the invoice, bill
orchallan issued by the tour operator, in
relation to a tour, only includes the service
charges for arranging or booking
accommodation for any person and does not
include the cost of such accommodation.
than 40 (i) CENVAT credit on inputs, capital goods
and input services, used for providing the
taxable service, has not been taken under
the provisions of the CENVAT Credit
Rules, 2004.
(ii)The bill issued indicates that the amount
charged in the bill is the gross amount
charged for such a tour.
 Service Tax Abatement Rate wef 01.04.2015

12. Construction of a complex, 25 (i) CENVAT credit on inputs used for

building, civil structure or a part
thereof, intended for a sale to a
buyer, wholly or partly except
where entire consideration is
received after issuance of
completion certificate by the
competent authority
providing the taxable service has not been
taken under the provisions of the CENVAT
Credit Rules, 2004.
(ii)The value of land is included in the
amount charged from the service receiver.

Explanation. –

A. For the purposes of exemption at Serial number 1 -

(i) The amount charged shall be an amount, forming or representing as interest, i.e.
the difference between the installments paid towards repayment of the lease
amount and the principal amount contained in such installments;

(ii) the exemption shall not apply to an amount, other than an amount forming or
representing as interest, charged by the service provider such as lease management
fee, processing fee, documentation charges and administrative fee, which shall be
added to the amount calculated in terms of (i) above.

B. For the purposes of exemption at Serial number 4 -

The amount charged shall be the sum total of the gross amount charged and the
fair market value of all goods and services supplied in or in relation to the supply
of food or any other article of human consumption or any drink (whether or not
intoxicating) and whether or not supplied under the same contract or any other
contract, after deducting-

(i) the amount charged for such goods or services supplied to the service
provider, if any; and
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied may be
determined in accordance with the generally accepted accounting
principles.
C. For the purposes of exemption at Serial number 12 –
The amount charged shall be the sum total of the amount charged for the
service including the fair market value of all goods and services supplied by the
recipient(s) in or in relation to the service, whether or not supplied under the same
contract or any other contract, after deducting-

BY : www.simpletaxindia.net
 Service Tax Abatement Rate wef 01.04.2015

(i) the amount charged for such goods or services supplied to the service provider,
if any; and
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied may be
determined in accordance with the generally accepted accounting
principles.
2. For the purposes of this notification, unless the context otherwise requires,-

a. “chit” means a transaction whether called chit, chit fund, chitty, kuri, or by whatever
name by or under which a person enters into an agreement with a specified number of
persons that every one of them shall subscribe a certain sum of money (or a certain
quantity of grain instead) by way of periodical installments over a definite period and
that each subscriber shall, in his turn, as determined by lot or by auction or by tender
or in such other manner as may be specified in the chit agreement, be entitled to a
prize amount,

b. "package tour" means a tour wherein transportation, accommodation for stay, food,
tourist guide, entry to monuments and other similar services in relation to tour are
provided by the tour operator as part of the package tour to the person undertaking the
tour,
c. “tour operator” means any person engaged in the business of planning, scheduling,
organizing, arranging tours (which may include arrangements for accommodation,
sightseeing or other similar services) by any mode of transport, and includes any
person engaged in the business of operating tours,
3. This notification shall come into force on the 1st day of July, 2012.

[F.No. 334 /1/ 2012-TRU]

(Rajkumar Digvijay)
Under Secretary to the Government of India

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, (EXTRAORDINARY), PART II, SECTION 3, SUB-
SECTION (i)]

BY : www.simpletaxindia.net
 Service Tax Abatement Rate wef 01.04.2015
Government of India Ministry of Finance (Department of Revenue) Notification New Delhi,
the 1st March, 2013 No.2 /2013 - Service Tax G.S.R....(E)-

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994
(32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so
to do, hereby makes the following amendment in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No.26/2012-Service Tax, dated the 20th June, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.
468 (E), dated the 20th June, 2012, namely:-

In the said notification, in the TABLE, for serial number 12 and the entries relating thereto,
the following serial number and the entries shall be substituted, namely:-

12 Construction of a complex, (i) CENVAT credit on inputs

building, civil structure or a part used for providing the
thereof, intended for a sale to a taxable service has not been
buyer, wholly or partly except taken under the provisions
where entire consideration is of the CENVAT Credit
received after issuance of Rules, 2004.
completion certificate by the
competent authority
(i)for residential unit having 25 (ii)The value of land is
carpet area upto 2000 square feet included in the amount
or where the amount charged is charged from the service
less than rupees one crore; receiver.
(ii) for other than the (i) above. 30%

3. The notification shall come in to force on the 1st day of March, 2013.

[F.No. 334 /3/ 2013-TRU]

(Raj Kumar Digvijay) Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, vide
notification No. 26/2012 - Service Tax, dated 20th June, 2012, vide number G.S.R. 468 (E), dated the
20th June, 2012 and this notification has not been amended so far.

Changes in Service Tax in Budget 2015 & Its Impact

BY : www.simpletaxindia.net
 Service Tax Abatement Rate wef 01.04.2015

1. Effective From March 1, 2015

2. Effective From April 1, 2015
3. From Date To Be Notified After The Enactment Of Finance Bill, 2015
Articles
 Impact of Changes in Service tax liability structure from Partial Reverse
Charge to Full Reverse Charge on Manpower supply and Security services in
transition period
 Hike in Rate of Service tax – Open Issues
 Taxability of newly made ‘Taxable Services’
Changes in Cenvat Credit in Budget 2015
Discussion Forum – Articles
1. Increase in time limit for availing Cenvat credit on Input services and Inputs
– Whether applicable on invoices issued prior to March 1, 2015?
2. Interest on Wrong availment of Cenvat Credit but not utilised – a tale of
never ending litigation and interpretational issues
3. Aftermath of non-excisable goods being equated to exempted goods/ final
products for the purpose of Rule 6 of the Cenvat Credit Rules, 2004
4. Doubtful fate of refund on Deemed exports
List of Service Covered Under Reverse Charge updated 01.04.2015

TDS-TCS Rates Chart Fy 2015-16 with due date Charts

BY : www.simpletaxindia.net
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

New Delhi, the 1st March, 2015

NOTIFICATION
No. 8/2015-Service Tax,

G.S.R. ---(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in
the public interest so to do, hereby makes the following further amendments in the notification of
the Government of India in the Ministry of Finance (Department of Revenue), No.26/2012-
Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

1. In the said notification, in the Table,-

(i) against Sl. No. 2, in column (4), for the entry, the following entry shall be substituted,
namely:-

"CENVAT credit on inputs, capital goods and input services, used for providing the
taxable service, has not been taken under the provisions of the CENVAT Credit Rules,
2004.";

(ii) against Sl. No. 3, in column (4), for the entry “ Nil”, the entry “Same as above” shall be
substituted;

(iii) for Sl. No. 5 and the entries relating thereto, the following serial number and entries shall be
substituted, namely:-

(1) (2) (3) (4)

“5 Transport of passengers by air, with
or without accompanied belongings
in
(i) economy class
CENVAT credit on inputs and
capital goods, used for providing
the taxable service, has not been
40 taken under the provisions of the
CENVAT Credit Rules, 2004.”;

(ii) other than economy class 60

(iv) against Sl. No. 7, in column (3), for the entry “25”, the entry “30” shall be substituted;
(v) Sl. No. 8 and entries relating thereto shall be omitted;

(vi) against Sl. No. 10, in column (3), for the entry “40”, the entry “30” shall be substituted.

2. This notification shall come into force on the 1st day of April, 2015.

[F.No. 334/5/2015 - TRU]

(Akshay Joshi)
Under Secretary to the Government of India

Note:-The principal notification No. 26/2012 - Service Tax, dated 20th June, 2012, was
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number
G.S.R. 468 (E), dated the 20th June, 2012 and was last amended by notification No.08/2014-
Service Tax, dated the 11th July, 2014 vide G.S.R. 477 (E), dated the 11th July, 2014.