These abatements lead to less rate of tax
Hence, sometimes Central Government places a condition that if abatement is being claimed by Service provider, he cannot claim Cenvat
We know that there are 3 types of Cenvat
- Cenvat on Inputs
- Cenvat on Capital Goods
- Cenvat on Input Services
CONDITIONS IMPOSED FOR DIFFERENT SERVICES
Air Transport Service and Renting on Hotels
Cenvat on Inputs and Capital Goods is not available
(But Cenvat on Input Service is available)
Goods Transport Agency
There is reverse charge on Goods Transport Agency (Freight charges) in some cases
Hence, the service receiver pays Service Tax
However, condition for not claiming cenvat is on Service provider and not on service receiver
Service Provider cannot claim cenvat of all 3 (inputs/capital goods/input services)
Cab Transport
Service Provider cannot claim cenvat of all 3 (inputs/capital goods/input services)
However,it may happen that he has availed input service of some other cab operators (hired cabs of some other cab operators)
In this case, Cenvat of Input Service is available as follows
If such other Cab Operator has charged
Full Service Tax-40% Input is available
40% Service tax (i.,e.claimed 60% Abatement)-Full Input Available
Tour Operator
Service Provider cannot claim cenvat of all 3 (inputs/capital goods/input services)
However,it may happen that he has availed service of some other tour operator
Input of service of such other tour operator is available
Also abatement is only applicable if gross amount charged in Bill and commission not shown separately
| Type of Service | Amount in Bill |
| Package Tour | Bill shall indicate gross amount of whole package |
| (Service tax rate is Charged on Whole Package) | |
| Booking Charges | Bill shall indicate gross amount of total charges |
| (If Hotel charges and Commission shown separately, then Service tax at full rate on Booking Charges) | |
| Other Cases | Bill shall indicate gross amount charged (Commission not shown separately) |
Bundled Service Supply of Food/Drinks with Rent
(like Hotel/Banquet hall/Pandal)
No Cenvat of Goods covered in Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (called CETA)
(No Input of Food items purchased in restaurant)
Construction of Complex,building ,structure
No Cenvat on Inputs
The value of land is included in the amount charged from the service receiver.
Other Services
No Cenvat of Inputs,Capital Goods and Input Services on
- Rail Transport both goods and passengers (New Amendment)
- Radio Taxi/Goods Carriage except Cab
