Service tax

there is no any notification about reduse in abatement from 50% to 40% yet,

Reduce to abatment  is just a proposal and has not been made effective.

In the current budget certain notifications has been issued.As per notification no. 13/2012-st there is abatement of 40%  on renting of hotels, clubs, campsites or commercial places meant for residencial or lodging purpose. So when this notification be applicable, as it is written in notification that this notification shall come in force from the date on which section 66B of the Finance act, 1994 comes into effect.

 The notification will come into effect only after the Finance Bill receives the assent of the President, i.e. the date of enactment of the Finance Bill..

Current abatememt on Hotel-Room Rent having Tariff of Rs.1000/- and abobe is 50% i.e Service tax rate is 6.18% with effect from 1st April 2012, but proposed abatement (reduced) in union Budget 2012-12 is 40% i.e 7.416%(would not be effective till the date  Finance Bill 2012 is passed)