Abatement notification - 26/2012 - Service Tax

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No. 26/2012- Service Tax New Delhi, the 20 th June, 2012 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. 17 [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 the CENVAT Credit Rules, 2004.] 18 [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 19 [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. 12 [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. ] 29 [.***] 6 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. 60 Same as above. 31 [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 .] 7 20 [Services of goods transport agency in relation to transportation of goods other than used household goods.] 13 [30] CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken 3 [by the service provider] under the provisions of the CENVAT Credit Rules, 2004. 21 [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. ] 22 [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 5 [motorcab] 40 6 [(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) 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 the 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 ] 7 [9A 7A [Transport of passengers, with or without accompanied belongings, by- a. a contract carriage other than motorcab. b. a radio taxi.] 23 [(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 15 [30] 24 [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. ] 33 [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.] 26 [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 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. 27 [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.] 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,- 16 [a. ***] 28 [b. ***] 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, 30 [ 2A. Nothing contained at Sl. No. 32 [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. ] 3. This notification shall come into force on the 1st day of July, 2012. [F.No. 334 /1/ 2012-TRU] (Rajkumar Digvijay) Under Secretary to the Government of India -------------------- Notes:- 1. Substituted vide notification no. 2/2013 ST dated 1.3.2013 , before it was read as, 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 25 (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. 2. Substituted vide Notification No.09/2013 - Service Tax - May 8, 2013 , before it was read as, 1 [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,- (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.]. (i) for residential unit having carpet area upto 2000 square feet or where the amount charged is less than rupees one crore; 25 (ii) for other than the (i) above. 30 3. Inserted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 w.e.f. 11th day of July, 2014 4. Substituted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 w.e.f. 11th day of July, 2014, before it was read as, Same as above. 5. Substituted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 with effect from the 1st day of October, 2014, before it was read as, any motor vehicle designed to carry passengers 6. Substituted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 with effect from the 1st day of October, 2014, before it was read as, Same as above. 7. Inserted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 w.e.f. 11th day of July, 2014 7A. Substituted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 w.e.f. 1st day of october, 2014, before it was read as, Transport of passengers, with or without accompanied belongings, by a contract carriage other than motorcab 8. Shall be substituted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 with effect from the 1st day of October, 2014, before it was read as, 50 9. Substituted vide Notification No. 08/2014 - Service Tax dated 11th July, 2014 with effect from the 1st day of October, 2014, before it was read as, input services 10. Substituted vide Not. 08/2015 - Dated 1-3-2015 , w.e.f. 1st day of April, 2015, before it was read as, Nil. 11. Substituted vide Not. 08/2015 - Dated 1-3-2015 , w.e.f. 1st day of April, 2015, before it was read as, Nil 12. Substituted vide Not. 08/2015 - Dated 1-3-2015 , w.e.f. 1st day of April, 2015, before it was read as, 5 Transport of passengers by air, with or without accompanied belongings 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. 13. Substituted vide Not. 08/2015 - Dated 1-3-2015 , w.e.f. 1st day of April, 2015, before it was read as, 25 . 14. Omitted vide Not. 08/2015 - Dated 1-3-2015 , w.e.f. 1st day of April, 2015, before it was read as, 8 Services provided in relation to chit 70 4 [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 ] 15. Substituted vide Not. 08/2015 - Dated 1-3-2015 , w.e.f. 1st day of April, 2015, before it was read as, 8 [40] 16. Omitted vide Not. 13/2005 - Dated 19-5-2015 , before it was read as, a. chit means a transaction whether called chit, chit fund, chitty, kuri, or by whatever name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to a prize amount, 17. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, 2 Transport of goods by rail 30 10 [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.] 18. Inserted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016 19. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, 11 [Same as above] 20. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, Services of goods transport agency in relation to transportation of goods. 21. Inserted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016 22. Inserted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, earlier omitted vide Not. 08/2015 - Dated 1-3-2015 23. Inserted vide Not. 08/2016 - Dated 1-3-2016, with effect from 1 st June, 2016 24. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, Same as above. 25. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, 11 Services by a tour operator in relation to,- (i) a package tour 25 (i) CENVAT credit on inputs, capital goods and 9 [input services other than the input service of a tour operator], 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 for such a tour. (ii) a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour 10 (i) CENVAT credit on inputs, capital goods and 9 [input services other than the input service of a tour operator], used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (iii) This exemption shall not apply 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. (iii) any services other than specified at (i) and (ii) above. 40 (i) CENVAT credit on inputs, capital goods and 9 [input services other than the input service of a tour operator], used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour. 26. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, 2 [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,- (a) for a residential unit satisfying both the following conditions, namely:- (i) the carpet area of the unit is less than 2000 square feet; and (ii) the amount charged for the unit is less than rupees one crore; 25 (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.] (b) for other than the (a) above. 30 27. Inserted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, 28. Substituted vide Not. 08/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, b. 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, 29. Inserted vide Not. 38/2016 - Dated 30-8-2016 30. Inserted vide Not. 38/2016 - Dated 30-8-2016 31. Corrected vide F. No. 354/226/2013 TRU (Pt.-I) - G.S.R. 1060 (E) - Dated 10-11-2016 - Service Tax earlier it was entered wrongly after serial no. 5. 32. Corrected vide F. No. 354/226/2013 TRU (Pt.-I) - G.S.R. 1060 (E) - Dated 10-11-2016 - Service Tax earlier it was read as, 5A of the TABLE 33. Substituted vide Not. 4/2017 - Dated 12-1-2017, w.e.f. 22nd day of January, 2017 , before it was read as, 25 [11 Services by a tour operator in relation to,- (i) a tour, only for the purpose of arranging or booking accommodation for any person 10 (i) CENVAT credit on inputs, capital goods and input services other than input services of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (iii) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, includes only the service charges for arranging or booking accommodation for any person but does not include the cost of such accommodation. (ii) tours other than (i) above 30 (i) CENVAT credit on inputs, capital goods and input services other than input services of a tour operator, 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 for such a tour and the amount charged in the bill is the gross amount charged for such a tour.