As per the recent Service Tax Amendments, w.e.f July 1, 2012, Abatement has been replaced by Taxable Percentage.
Taxable Percentage refers to a certain percentage of the value of Service on which Service Tax can be levied. Whereas, Abatement is a deduction allowed (by the Government) on the value considered for Service Tax.
Example: Taaza Caterers received services - Transportation of goods by rail worth Rs.1,00,000 and the Taxable Percentage is 30%. So, only 30% of the Service Amount is applicable for charging Service Tax i.e. Rs.30,000 (30% of Rs.1,00,000).
'Taxable Percentage' has been shared with
