SERVICE TAX ABATEMENT CHART FOR FY 2016-2017 AY 2017-2018
| Sl. No. | Description of taxable service | Taxable per cent (%) | Abatement per cent | Effective rate of ST: 01.06.2015 to 14.11.2015 (%) | Effective rate of ST: 15.11.2015 (after Introduction of SB Cess @ 0.5%) up to 31.05.2016 (%) | Effective rate of ST: 1.06.2016 (after Introduction of KKC @ 0.5%)(%) | |
| 1 | Financial leasing including hire purchase | 10 | 90 | 1.4(14%*10%) | 1.45(14.5%*10%) | 1.5(15%*10%) | |
| 2 | Transport of goods by rail (other than service specified at Sl. No. 2A below) | 30 | 70 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 2A | Transport of goods in containers by rail by any person other than Indian Railways | 40 | 60 | NA | Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 5.8 (14.5%*40%) | 6(15%*40%) | |
| 3 | Transport of passengers, with or without accompanied belongings by rail | 30 | 70 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 4 | Bundled services by way of supply of food or any other article of human consumption or any drink, in a premises together with renting of such premises | 70 | 30 | 9.8(14%*70%) | 10.15(14.5%*70%) | 10.5(15%*70%) | |
| 5 | Transport of passengers by air, with or without accompanied belongings in – | ||||||
| (i) economy class | 40 | 60 | 5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) | ||
| (ii) other than economy class | 60 | 40 | 8.4(14%*60%) | 8.7(14.5%*60%) | 9(15%*60%) | ||
| 6 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. | 60 | 40 | 8.4(14%*60%) | 8.7(14.5%*60%) | 9(15%*60%) | |
| 7 | Services of goods transport agency in relation to transportation of goods other than used household goods. | 30 | 70 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 7A | Services of goods transport agency in relation to transportation of used household goods. | 40 | 60 | NA | Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016.Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 5.8 ( 14.5%*40%) | 6(15%*40%) | |
| 8 | Services provided by a foreman of chit fund in relation to chit | 70 | 30 | Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016, earlier omitted vide NN 08/2015-ST dated 01.03.2015.Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 10.15 (14.5%*70%) | 10.5(15%*70%) | ||
| 9 | Renting of motorcab | 40 | 60 | 5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) | |
| 9A | Transport of passengers, with or without accompanied belongings, by-a) a contract carriage other than motorcab | 40 |
60 |
5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) | |
| b) a radio taxi | |||||||
| Service tax is proposed to be levied on service of transportation of passengers by air conditioned stage carriage @ 40% after abatement of 60% without input tax credit, with effect from 01.06.2016 [Deletion of Section 66D(o)(i) of the Finance Act and insertion of Entry No. 23(bb) of the Mega Exemption Notification w.e.f 01.06.2016] | |||||||
| 10 | Transport of goods in a vessel | 30 | 70 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 11 | Services by a tour operator in relation to- | ||||||
| (i) a tour, only for the purpose of arranging or booking accommodation for any person | 10 | 90 | 1.4(14%*10%) | 1.45(14.5%*10%) | 1.5(15%*10%) | ||
| (ii) tours other than (i) above | 40/30 |
60/70 |
5.6(14%*40%) | 15.11.2015 to 31.03.2016: 5.8(14.5%*40%) | 4.5(15%*30%) | ||
| 01.04.2016 to 31.05.2016: 4.35 | |||||||
| (14.5%*30%) | |||||||
| NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016: Abatement rates in respect of services by a tour operator in relation to a tour other than (i) has been rationalised from 75% (package tour) and 60% (others) to 70%. Consequently, the category of “package tour” stands deleted w.e.f. 01.04.2016 | |||||||
| 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: | 30 | 70 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| Effective from 01.04.2016, a uniform abatement at the rate of 70% is prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfillment of the existing conditions. For the scenario till 31.03.2016: | |||||||
| (a) for a residential unit satisfying both the following conditions, namely:-(i) the carpet area of the unit is less than 2000 square feet; and | 25 |
75 |
3.5(14%*25%) | 15.11.2015 to 31.03.2016: 3.625 (14.5%*25%) | |||
| (ii) the amount charged for the unit is less than Rupees 1crore; | |||||||
| for other than the (a) above. | 30 | 70 | 4.2(14%*30%) | 15.11.2015 to 31.03.2016: 4.35 (14.5%*30%) | |||