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Discussion > Service Tax > abatements >

New abatement rates (service tax)

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B.Com ARTICLE CA FINAL


[ Scorecard : 62]
Posted On 28 June 2012 at 22:45 Report Abuse

Can any one post new abatement list of service tax as per recent amendments ?

As per my knowledge new taxable portion for below mentioned services are as follows kindly correct me if I am wrong :

1.Restaurant Service in Hotel   - New taxable portion - 40 %

2.Hotel Room Service - New taxable portion - 60 %

 

?


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vishnu
job


[ Scorecard : 75]
Posted On 28 June 2012 at 23:20

Dear Sir Kindly refer the notification 26/2012 ST dated 20.06.12 which provides you the rate of abatment for the certain services. Further the taxable portion for resturant services is 30% and renting of room in lodge is 40% which is effective from 1.07.2012


Total thanks : 1 times




CA Ganesh Karthik
Chartered Accountant


[ Scorecard : 350]
Posted On 29 June 2012 at 12:34

 Abatement for Servies is provided by way of 2 notifications.

  1. Notification No. 24/2012 - Service Tax Valuation Rules states the abatement provisions in case of works contract service and restaurant srvice.
  2. Notification No. 26/2012 - General Abatement for other services.

There are no further notifications in relation to abatement of services.

You can get these notifications from the CBEC website.

www.cbec.gov.in

 




Parthraj Parmar
B.Com ARTICLE CA FINAL


[ Scorecard : 62]
Posted On 29 June 2012 at 12:50

@ Ca Ganesh Kartik,

W.E.F. : 01.07.2011 new services Restaurant and Hotel services were included in the net of Service Tax.With abatement rates of 70 % - Restaurant and 60 % on Rooms.

But as per new notificatopm is there any changes in the said rates ?

 




CA Ganesh Karthik
Chartered Accountant


[ Scorecard : 350]
Posted On 29 June 2012 at 14:14

Dear Parthraj, providing the extracts of the relevant notifications. Hope this clarifies your doubts.

 

Notification No. 26/2012 :

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. - Service Tax payable on 60% of the value provided 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.

 

Notification No. 24/2012:

Determination of value of  service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering.- Subject to the provisions of section 67, the value of  service portion,  in an activity wherein goods   being  food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity at a restaurant or as outdoor catering, shall be the specified percentage of the total amount charged for such supply, in terms of the following Table, namely:-

Table

Sl.

No.

Descripttion

Percentage of  the total amount

(1)

(2)

(3)

1.

Service portion in an activity wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of the activity,  at a restaurant

40

2.

Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner as a part of such outdoor catering

60

Explanation 1.- For the purposes of this rule, “total amount” means 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), whether  or not  supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services,  if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:

Explanation 2.- For the removal of doubts, it is clarified that the provider of taxable service shall not take CENVAT credit of duties or cess paid on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986).”.




Anand Kaushik
Executive Commercial


[ Scorecard : 41]
Posted On 30 August 2012 at 11:09

Dear All,

We have a Vendor who is supply food at our company and he has a restaurent and he is registered in service tax wiht category "Outdoor catering",

Kindly advice on what rate of percentage  should be taxable and what rate abatement on his bill with effect from 01.07.12.

kindly reply urgentely.

Regards




Rajat Goyal


[ Scorecard : 39]
Posted On 09 November 2013 at 15:10

Dear Parthraj Parmar and Vishnu,

Have you both gone mad, updating the wrong abatement rates and parmar is also asking about change in rates even after posting the wrong rates. Please Vishnu don't answer any query untill you are 100 % sure about your answer. As caclubindia is the most popular site for CA students, these kinds of answers can misguide, them.

Regards,

Searcher for the abatement rates and misguided by the above answer,

Rajat Goyal




imran basha
accountant


[ Scorecard : 32]
Posted On 03 February 2014 at 14:13

Sir,

Can any one post new abatement list of service tax as per recent amendments for Cable Operaters if any abatement  ?
 


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