Abatement, exemption, reverse charge, negative list

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2015 Dear All,
please give me some information about negative list , abatement , exemption, reverse charge , i am not being able to get the difference in above all 4,
I Have only idea that 01)- Negative list mean list of service which are tax free,
02)- exemption :- little idea that service for some time tax free but if gov. want it can be chargable for tax through a simple notification.
03)-abatment :No Idea
04)- reverse charge:No Idea
Plz explain.........

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2015 1 Negative list : Service tax payable on all the services except the services in the negative list.
2 Exemption: Govt has exempted certain services from service tax. Megaexemption notification 25/2012.
3 Abatement: Certain services includes material value, as service tax is payable on service only abatement is given. Foods supplied in AC restaurants 60% abatement is given as food includes material value.
4 Reverse charge: Either part or full value of service tax payable to govt by service receiver.

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2015 Thanks For Your reply..
Please clear..
3)- Abatement: does it mean that in service tax amount some amount is tax free and rest amount will be paid to service provider and provider will pass it to government....and from his(Provider) side not tax will be paid ?
4)- and Reverse charge : only service receiver will pay the part or full value of service tax to provider and provider will pass this amt to government...from his side provider will not pay any tax
If yes then no tax for provider only receiver(Consumer) will pay tax in both case........?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2015 3 You are right.
4 No Only service receiver directly remit the service tax to govt in case of full/part value under RCM. The balance part will be given to service provider for remittance to govt.
In both the cases ultimately service receiver is bearing the service tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2015 Dear Sir, Kindly Confirm..
that can we relate abatement and Reverse charge to each other ...i meant to say is it possible that......in any case abatement is available and in that same case Reverse charge also is applicable........

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 September 2015 In abatement case also reverse charge applicable. For e.g. in case of works contract for original works after availing 60% abatement service tax payable on 20% in case of reverse charge.

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