Budget 2012-2013 – Deemed value of taxable service - Abatement.

[C.A. Surender Gupta]

Budget 2012-2013 – Deemed value of taxable service - Abatement

Notification no. 13/2012 – ST ( available on www.taxmanagementindia.com)
(To be effective from Date to be notified after enactment of Finance bill 2012)

Value of the following taxable services for the purpose of levy of service tax would be calculated at  percentage specified in the Table subject to the relevant conditions specified
                                                                        

Sl. No.	Description of taxable service	Deemed value - Existing %	Proposed %	Conditions
1	Financial leasing services including equipment leasing and hire purchase	10 (Nft 4/2006)	10	Nil.
2	Transport of goods by rail	30 (Nft 1/2006)	30	Nil.
3	Transport of passengers by rail	New levy	30	Nil.
4.1	Catering in a premises, including hotel, convention center, club, pandal, shamiana or any place specially arranged for organizing a function	Convention center or mandap catering- 60 pandal or shamiana catering – 70 (Nft 1/2006)	70	CENVAT credit on any goods classifiable under chapter 1 to 22 used for providing the taxable service is not allowed
5	Transport of passengers by air	Upto 31.03.2012 Domestic travel – max Rs 150 International Travel – max Rs 750 (Nft 26/2010)	40	CENVAT credit on inputs and capital goods, not allowed
		w.e.f. 01.04.2012 All Class Exemption 60% Levy of ST on 40% (Nft 6/2012)
6	Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.	50 (Nft 1/2006)	60	CENVAT credit on inputs and capital goods, not allowed
7	Transport of goods by road by Goods Transport Agency	25 (Nft 13/2008)	25	No CENVAT credit
		Exempt –(i) when gross amount charged on consignments not exceeding Rs 1500, or (ii) gross amount charged on individual consignment not exceeding Rs 750 - (Nft 034/04)
8	Services provided in relation to chit	70 (Nft 1/2006)	70	No CENVAT credit
9	Renting of any motor vehicle designed to carry passengers	40 (Nft 1/2006)	40	No CENVAT credit
10	Transport of goods in a vessel from one port in India to another	75 (Nft 1/2006)	50	No CENVAT credit.
11	(i)Services provided by a tour operator in relation to a package tour	25 (Nft 1/2006)	25	No Cenvat Credit
	(ii)Services by a tour operator in relation to a tour, solely of arranging or booking accommodation for any person in relation to a tour	10 (Nft 1/2006)	10	No Cenvat Credit
	(iii) Services, other than services specified in (i) and (ii) above, provided to any person, by a tour operator in relation to a tour	40 (Nft 1/2006)	40	No Cenvat Credit