26 October 2008
Percentage of abatement is as follows
Commercial/Industrial Construction: 67% Business Auxiliary Services: 30% Renting of Immovable property:No Abatement
So u can calculate the effective service tax rate after considering abatements i.e 67 % abatement means service tax is chargeable on only 33 % of the value of the service.
In Finance act 2008 Goods transport agency(GTA) has been excluded from Output service.Besides this earlier Abatement of 75% on GTA service is withdrawn,instead exemption of 75 % of Gross amount charged as freight is introduced unconditionally.
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