Abatement in Service Tax
Notification No. 26/2012 Dated 26/06/2012
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), and in supersession of notification number 13/2012-Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 211(E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of the description specified in column (2) of the Table below, from so much of the service tax leviable thereon under section 66B of the said Act, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (3) of the said Table, of the amount charged by such service provider for providing the said taxable service, unless specified otherwise, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table, namely :-
| Sl. No. | Description of taxable service | Percentage | Conditions |
| (1) | (2) | (3) | (4) |
| 1 | Services in relation to financial leasing including hire purchase | 10 | Nil. |
| 2 | Transport of goods by rail (other than services specified at SI. No. 2A | 30 | 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. |
| 2A | Transport of goods in containers by rail by any person other than Indian Railways | 40 | 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. |
| 3 | Transport of passengers, with or without accompanied belongings by rail | 30 | 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. |
| 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 | 70 | (i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. |
| 5 | Transport of passengers by air, with or without accompanied belongings in (i) economy class (ii) other than economy class | 40 60 | 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.”; |
| 5 |
Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. |
10 |
CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004. |
| 6 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. | 60 | Same as above. |
| 7 | Services of goods transport agency in relation to transportation of goods other than used household goods. | 30 | CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken [by the service provider]under the provisions of the CENVAT Credit Rules, 2004. |
| 7A | Services of goods transport agency in relation to transportation of used household goods. | 40 | CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004. |
| 8 | Services provided by a foreman of chit fund in relation to chit | 70 | CENVAT credit on inputs, capital goods and input services, used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004. |
| 9 | Renting of motorcab | 40 | (i) CENVAT credit on inputs, capital goods and input services used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004; (ii) CENVAT credit on input service of renting a motor cab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner : (a) Full CENVAT credit of such input service received from a person who is paying service tax forty percent of the value; or (b) Up to forty percent CENVAT credit of such input services received from a person who is paying service tax on full value; (iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of CENVAT Credit Rules, 2004] |
| 9A | Transport of passengers, with or without accompanied belongings by (a) a contract carriage other than motor cabs. (b) a Radio taxi (c) a stage carriage. | 40 | CENVAT credit on inputs, capital goods and input services used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 |
| 10 | Transport of goods in a vessel | 30 | 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. |
| 11 | Services by a tour operator | 60 |
(i) 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.
(ii) The bill issued for this purpose indicates that it is inclusive of charges
of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the
charges of accommodation and transportation required for such a tour.
|
| 12 | 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 | 30 | (i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004; (ii) The value of land is included in the amount charged from the service receiver. |
Explanation:-
(A) 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 instalments paid towards repayment of the lease amount and the principal amount contained in such instalments;
(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.
(B) * * * * * * * * * * * *
(BA) For the purpose of exemption at Serial number 9, the amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods (including fuel) 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:
Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.
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
the value added tax or sales tax, if any, levied thereon : (ii)
Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.
(3) Para 2 of Notification No. 26/2012-S.T., defines the term “package tour” and “tour operator” in the following manner unless the context otherwise requires,-
(a). “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,
(b) “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.