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Name of Service  Abatement Rate Taxable Rate Effective Rate of Service Tax
Goods Transport Agency (Road)      
Normal Cases 70.0% 30% 4.5%
For Supply of Old Household Items 60.0% 40% 6.0%
       
Goods Transport by Railways      
by Private Railways 60.0% 40% 6.0%
by Government Railways 70.0% 30% 4.5%
       
Passenger Transport by Railways 70.00% 30% 4.5%
       
Goods transport by vessel (Like Ship)  70.00%  30% 4.5%
       
Chit Fund 70.0% 30% 4.5%
       
Construction Services      
For Residential unit less than 2000 sq feet + Price Charged > 1 cr 70.0% 30% 4.5%
Other Cases 70.0% 30% 4.5%
       
Tour Operator Service      
Booking Accomodation 90.0% 10% 1.5%
Package Tour Service 70.0% 30% 4.5%
Other Cases 70.0% 30% 4.5%
       
       
Transport of Passengers      
Motor Cab 60.0% 40% 6.0%
Radio Taxi 60.0% 40% 6.0%
Stage Carriage (AC Bus) 60.0% 40% 6.0%
Stage Carriage (Non AC Bus)   Exempt 0.0%
       
       
Air transport (passenger)      
Economy Class 60% 40% 6.0%
Other than Economy Class 40% 60% 9.0%
       
Financial Leasing Services 90% 10% 1.5%
       
Supply of Food.Drinks with Rent 30% 70% 10.5%
(like Hotel/Banquet hall/Pandal)      
       
Renting of Hotel/Guest house/Lodge 60% 40% 6.0%
       
Restaurant Services 60% 40% 6.0%

 

 

 Change in Abatement Rates w.e.f 1.6.2016

AC Stage Carriage Bus is now taxable(removed from Negative List) and there is 60% Abatement (40% Taxable)

Transport of Passengers Old Rate New Rate
Motor Cab 40% 40%
Radio Taxi 40% 40%
Stage Carriage (AC Bus) Exempt 40%
Stage Carriage (Non AC Bus) Exempt Exempt

However,Non AC Stage Carriage (Non AC Bus) continue to be exempt (Notification 9/2016)

 

 Change in Abatement Rates w.e.f 1.4.2016

Name of Service  TAXABLE RATES
  Old Rate New Rate
Goods Transport Agency (Road)    
Normal Cases 30% 30%
For Supply of Old Household Items 30% 40%
     
Goods Transport by Raiways    
by Private Railways 30% 40%
by Government Railways 30% 30%
     
Chit Fund 0% 30%
     
Construction Services    
For Residential unit less than 2000 sq feet + Price Charged > 1 cr 25% 30%
Other Cases 30% 30%
     
Tour Operator Service    
Booking Accomodation 10% 10%
Package Tour Service 25% 30%
Other Cases 40% 30%
     

(Note:- These are taxable Rates,i.e.Rates after claiming abatement)

 

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  1. Indirect Tax
  2. Amendments Indirect Tax for May 2017 Exams
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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