ABATEMENT
Notification No. 26/2012- Service Tax dated the 20
th
June, 2012, incorporating the changes up to
30.06.2017
G.S.R….. (E). - 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 17
th
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
17
th
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;-
Table
Sl.
No.
Description of taxable
service
Percent-
age
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 service specified
at Sl. No. 2A below)
30 CENVAT credit on inputs and capital
goods, used for providing the taxable
service, has not been taken under the
provisions of CENVAT Credit Rules,
2004.” Inserted by notification no.
8/2016-Service Tax dated 1 March
2016
[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 CENVAT Credit Rules,
2004.] Inserted by notification no.
8/2016-Service Tax dated 1 March
2016
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 CENVAT Credit Rules,
2004.]Inserted by notification no.
8/2016-Service Tax dated 1 March
2016
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.]
6. Renting of hotels, inns, guest
houses, clubs, campsites or
other commercial places
meant for residential or
lodging purposes.
60 Same as above.
[6A.
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.] Inserted by
Notification no. 38/2016-Service Tax
dated 30 August 2016 as corrected by
the corrigendum dated 10.11.2016.
7. [Services of goods transport
agency in relation to
transportation of goods other
than used household
goods.]Inserted by
notification no. 8/2016-
Service Tax dated 1 March
2016
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.] Inserted by
notification no. 8/2016-Service Tax
dated 1 March 2016.
8. Services provided by a
foreman of a 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 by the service provider
under the provisions of the CENVAT
Credit Rules, 2004.]Inserted by
notification no. 8/2016-Service Tax
dated 1 March 2016
9. Renting of any motor cab 40 (i) CENVAT credit on inputs and
capital goods, used for providing the
taxable service, has not been taken by
the service provider under the
provisions of the CENVAT Credit
Rules, 2004;
(ii) CENVAT credit on input
service of renting of motorcab 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 on forty percent of value; or
(b) Up to forty percent CENVAT
credit of such input service
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 the CENVAT Credit
Rules,2004.
[9A. [Transport of passengers,
with or without accompanied
belongings, by-
a. A contact carriage
other than motorcab.
b. A radio taxi.
[c. A stage carriage
Inserted by notification no.
8/2016-Service Tax dated 1
March 2016 to be in effect
from 1 June 2016
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.]
10. Transport of goods in a vessel 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.]Inserted by
notification no. 8/2016-Service Tax
dated 1 March 2016
[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.]Inserted by Notification No.
4/2017-ST dated 12
January 2017.
[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.” Inserted by notification no.
8/2016-Service Tax dated 1 March
2016
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 installments paid towards repayment of the lease amount and
the principal amount contained in such installments;
(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. For the purposes of exemption at Serial number 4 -
The amount charged shall be the sum total of the gross amount charged and the fair
market value of all goods and services supplied in or in relation to the supply of food
or any other article of human consumption or any drink (whether or not intoxicating)
and 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
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied
may be determined in accordance with the generally accepted accounting
principles.
[BA. For the purposes 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.” Inserted by notification
no. 8/2016-Service Tax dated 1 March 2016
C. 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
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied may
be determined in accordance with the generally accepted accounting
principles.
2. For the purposes of this notification, unless the context otherwise requires, -
[(a) ***] omitted by notification no.13/2015-Service Tax dated 19 May 2015
[(b) ***] deleted vide notification no. 8/2016-Service Tax dated 1 March 2016
(c) “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,
[2A. Nothing contained at Sl. No.6A of the TABLE shall apply on or after the expiry of a period
of one year from the date of commencement of operations of the Regional Connectivity Scheme
Airport as notified by the Ministry of Civil Aviation.” Inserted by Notification 38/2016 dated 30
August 2016]
3. This notification shall come into force on the 1st day of July, 2012.
[F. No. 334/1/2012-TRU]
