- While claiming abatement 90% in relation to Services of solely booking accommodation of tours, it is made necessary to include accommodation cost in invoice along with service charges.
- Now there is single abatement rate of 70% for tour operator other than mentioned above.
- Services provided by foreman to chit fund are proposed to be taxed with 30% abatement availability.
- To avail abatement on renting of motor car services, cost of fuel should be included in the consideration charged.
- For composition scheme of residential construction activity,condition of abatement as per carpet area is being removed and single abatement of 70% is now being prescribed subject to fulfillment of existing conditions.
- From 1/4/2016, service tax is leviable on 30% on amount charged for service of transport of passengers by rail , without availability of cenvat credit of inputs and capital goods. ( Cenvat credit of input services are now available).
- Transport service of goods in containers by rail by any other person other than Indian Railway is taxable under service tax with reduced abatement rate of 60%. So there are two categories ofabatement for transport of goods in rails. For Indian railways, it is 70% ( 30% value is taxable) and for others , it is 60% (40% value is taxable). Credit of input services are available to both of them while claiming abatement.
- For transport of goods by vessel, 70% abatement is available with cenvat credit of input services.
- For GTA, abatement on transport of used household goods is being rationalized with 60% abatementrate without availment of cenvat credit of inputs, input services and capital goods. For other goods, 70% abatement is available.
Is a Practicing CA from Delhi .
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