- tour operator services
- transport of passengers by rail
- transport of goods by rail
- transport of goods by rail in containers
- shifting of used household goods by a GTA
- foreman to a chit fund
- renting of motor-cab services.
- transport of goods by vessel.
- construction of complex, building, civil structure, etc.
The summary of changes is as follows –
- In
cases where the tour operator is providing services solely of arranging
or booking accommodation for any person in relation to a tour,
abatement of 90% is available with specified conditions. However, this
abatement of 90% cannot be claimed in such cases where the invoice, bill
or challan issued by the tour operator, in relation to a tour, only
includes the service charges for arranging or booking accommodation for
any person and does not include the cost of such accommodation. There is
no change in the rate of abatement or the conditions required to be
fulfilled for claiming the said abatement. (Entry at S. No. 11(i) of Notification No. 26/2012-ST as amended vide notification No. 8/2016-ST dated 1.03.2016 refers)
- Abatement
rates in respect of services by a tour operator in relation to a tour
other than in para 9.1 above, has been rationalised from 75% and 60% to
70%. Consequently, the definition of “package tour” as provided in the
relevant notification is being omitted.(Amendment in entry at S. No. 11 of notification No. 26/2012-ST refers)
- Services
provided by foreman to a chit fund under the Chit Funds Act, 1982 shall
be taxed at an abated value of 70% [i.e., with abatement of 30%],
subject to the condition that Cenvat credit of inputs, input services
and capital goods has not been availed. (Amendment in entry at S. No. 8 of Notification No. 26/2012-ST refers)
- At
present, there is abatement of 60% on the gross value of renting of
motor-cab services, provided no cenvat credit has been taken. It has
been made clear by way of inserting an explanation in the notification No. 26/2012-ST that
cost of fuel should be included in the consideration charged for
providing renting of motor-cab services for availing the abatement. (Insertion of Explanation ‘BA’ in Notification No. 26/2012-ST refers)
- At
present, two rates of abatement have been prescribed for services of
construction of complex, building, civil structure, or a part thereof,-
(a) 75% of the amount charged in case of a residential unit having
carpet area of less than 2000 square feet and costing less than ₹ 1
crore, and (b) 70% of the amount charged in case of other than (a)
above, both subject to fulfilment of certain conditions prescribed
therein. A uniform abatement at the rate of 70% is has been prescribed
for services of construction of complex, building, civil structure, or a
part thereof, subject to fulfilment of the existing conditions. (Amendment in entry at S. No. 12 of Notification No. 26/2012-ST refers)
- At
present, service tax is leviable on 30% of the amount charged for the
service of transport of passengers by rail, without cenvat credit of
inputs, input services and capital goods. Thus, abatement of 70% is
presently available in respect of the said services. Abatement will
continue with the same level with cenvat credit of input services for
the said service. (Amendment in entry at S. No. 3 of Notification No. 26/2012-ST refers)
- At
present, service tax is payable on 30% of the value of service of
transport of goods by rail without cenvat credit on inputs, input
services and capital goods. Thus, abatement of 70% is presently
available in respect of the said service. Abatement will continue with
the same level with cenvat credit of input services for transport of
goods by rail (other than “transport of goods in containers by rail by
any person other than Indian Railway”). A reduced abatement rate of 60%
with credit of input services has been prescribed for transport of goods
in containers by rail by any person other than Indian Railway. (Existing entry at S.No. 2 and new entry at S. No. 2A of Notification No. 26/2012-ST refers)
- At
present, service tax is leviable on 30% of the value of service of
transport of goods by vessel without Cenvat credit on inputs, input
services and capital goods. Thus, abatement of 70% is presently
available in respect of the said service. Abatement will continue with
the same level with cenvat credit of input services for the said
service. (Amendment in entry at S. No. 10 of Notification No. 26/2012-ST refers)
- Abatement
on transport of used household goods by a Goods Transport Agency (GTA)
has been rationalised at the rate of 60% without availment of cenvat
credit on inputs, input services and capital goods by the service
provider (as against abatement of 70% allowed on transport of other
goods by GTA). (New entry at S. No. 7A in Notification No. 26/2012-ST refers)
- For
the purpose of calculating the abatement in case of services of renting
of motor cabs, amount charged for provision of service shall include
fair market value of all goods (including fuel) and services supplied by
the recipient of services.
- Definition of package tour has been deleted w.e.f. 01.04.2016 stage carriage 01.06.2016.
In S.No. 9A of abatement table in Notification No. 26/2012-ST pertaining
to transport of passengers, with or without accompanied belongings, one
more mode has been added, i.e. of 'a stage carriage'. Services provided
by stage carriage shall also be covered under entry 9A and allowed
abatement @ 60 percent w.e.f. 1.6.2016. Hitherto, this service was
covered under clause (o) of section 66D (Negative List) which stands omitted by the Finance Act, 2016w.e.f. 1.6.2016.
Table
S. No.
|
Description of service provided
|
Existing Taxable Value
|
Taxable value after amended Abatement
|
2
|
Transportation of goods by rail by Indian Railways
| 30% without Cenvat credit | 30% with input service Cenvat credit |
2A
|
Transportation of goods in containers by rail by other than Indian Railways
| 30% without Cenvat credit |
40% with input service Cenvat credit
|
3
|
Transportation of passenger, with or without accompanied belongings by Rail
| 30% without Cenvat credit | 30% with input service Cenvat credit |
7A
| Services of GTA in relation to transportation of used household goods | 30% without CE Cenvat Credit |
40% without Cenvat credit
|
S
| Services by foreman of chit | Nil (omitted) | 30% without Cenvat credit |
9A
(c)
|
Transportation of passengers with or without accompanied belongings by "a stage carrier" (w.e.f. 1.6.2016)
| Not taxable (in negative list) |
40% without Cenvat credit
|
10
| Transportation of goods by vessel | 30% without Cenvat credit | 30% with input service Cenvat credit |
11
(i)
| Services by a tour operator in relation to package tour | 25% with input service credit of other operator | 30% with input service credit of other operators 10% with |
11
(ii)
| Services by a tour operator, solely arranging booking services | 10% without Cenvat credit | Cenvat of input service credit of other operators 40% with |
11 (iii)
| Services other than 11 (i) and 11 (ii) |
40% without Cenvat credit
| Cenvat credit of input service of other operators |
12
| Construction
service provided for residential unit where consideration received is
less than Rs.l crore and carpet area is less than 2,000/- sq. ft. | 25% with Cenvat credit on capital goods and input service | 30% with Cenvat credit on capital goods and input service |
CBEC clarifications
" Notification No. 26/2012-ST is
being amended to provide that transport of goods by rail (other than
transport of goods in containers by any person other than Indian
Railway) shall be eligible for abatement at the rate of 70% with credit
of input services. Transport of goods in containers by any person other
than Indian Railway shall be eligible for abatement at the rate of 60%
with credit of input services.
It
is hereby also clarified that service provided by the Indian Railways
to Container Train Operators (CTOs) of haulage of their container train
(rake of wagons with containers) is a service of „Transport of Goods by
Rail‟ and is, therefore, eligible for abatement and tax treatment
accordingly, that is, for abatement at the rate of 70% with credit of
input services."
Swachh Bharat Cess on Abated Value
By: Dr. Sanjiv Agarwal
|
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