I believe Ali's point is correct. Normally Abatement means some portion of total service gets exemption. And this will be fixed by the govt. But i didint get for manpower ...how it ...
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May be she is asking for excemption of small service provider..............
No there is no abatement in manpower services. I presume whether the salary, PF, ESI can be deducted. The settled position is that the same shouldbe included.
It would have been ideal that there was an abatement since such suppliers only get a commission based on the total salaries. However the industry should represent for this to happen.
As per the service tax statute... abatement is a exemption on some part of the service provided by the service receiver. Some of the abatement services are construction, mandap keeper, caterer, cab transporter etc., There are no abatement on the man power service.
the service receiver has to pay the service tax on the total amount of the service provided by the provider...
There is no abatement available in case of franchise Service. Further basic limit of 10 lakh is also not available to franchiser as he is providing service under brand name of other.