Service tax notifications26 Mar 2015
CBEC vide Notification No.8/2015-ST-Dated 01/03/2015 has made the following changes to earlier Notification No.26/2012-ST- Dated 20/06/2012 and the gist is as follows:
Uniform Abatement for transport by rail, road and vessel:
A uniform abatement of 70% has been prescribed for transport by rail, road and vessel to bring parity in these sectors.Service tax shall be payable on 30% of the value of such service subject to a uniform condition of non-availment of Cenvat credit on Inputs, Capital goods and Input services.
Reduction in abatement for classes other than economy class:
The abatement for classes other than economy class has been reduced from 60% to 40%. Accordingly, Service tax would be payable on 60% of the value of such higher classes.
Abatement in relation to Chit fund withdrawn:
Abatement for the services provided in relation to Chit fund stands withdrawn. Consequently, Service tax shall be paid by on full consideration received by the foremen of Chit fund.