Abatement chart

Sl.No.

Descripttion of taxable service

Percentage

   

Taxable Value

Abatement

(1)

(2)

(3)

(4)

1

Services in relation to financial leasing including hire purchase (Refer Note-1)

10

90

2

Transport of goods by rail

30

70

3

Transport of passengers, with or without accompanied belongings by rail

30

70

4

Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises (Refer Note-2)

70

30

5

Transport of passengers by air, with or without accompanied belongings in

   
 

(i) economy class

40

60

 

(ii) other than economy class

60

40

6

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.

60

40

7

Services of goods transport agency in relation to transportation of goods.

30

70

8

Renting of motorcab

40

60

10

Transport of passengers, with or without accompanied belongings, by-a. a contract carriage other than motorcab.b. a radio taxi.

40

60

11

Transport of goods in a vessel

 30

70

12

Services by a tour operator in relation to,-(i) a package tour (Refer Note-4)

25

75

(ii) a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour (Refer Note-5)

10

90

(iii) any services other than specified at (i) and (ii) above.

40

60

13.

(Refer Note-3) 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,-

   
 

(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

(ii) the amount charged for the unit is less than rupees one crore;

25

75

 

(b) for other than the (a) above.

30

70

Note-1 For the purposes of exemption at Serial number 1 –

(i) The amount charged shall be an amount, forming or representing as interest, i.e. the difference between the installments paid towards repayment of the lease amount and the principal amount contained in such installments;

(ii) the exemption shall not apply to an amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administrative fee, which shall be added to the amount calculated in terms of (i) above.

Note-2. For the purposes of exemption at Serial number 4 –

The amount charged shall be 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) and whether or not supplied under the same contract or any other contract, after deducting-

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

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

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

Note-3. For the purposes of exemption at Serial number 12 –

The amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting-

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

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

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

Note-4 “package tour” means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour,

Note-5 “tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours,

Replies (3)

Dear CA Anand,

Does abatement applicable in case of cancellation charges collected from guest for cancelling tour by him?

 

Regards

 

CA Yogesh

 

Dear Sir,

No, abatement is available only on specified service. 

Hence in my opinion Cancellation is another activity, it can not be mixed with tour & travel service.  

Does abatement applicable only on Pandal and Shamiana service?

 

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