23 April 2009
Abatement - means you are allowed some exemption for service tax on the gross amount. For Example - Gross amount is 100.00. Abatement is 40%. Then service tax is payable on Rs. 60.
CENVAT Credit - means you will allowed to deduct the input service tax on the services you have acquired to provide this service. It is same like VAT where VAT payable is Output VAT - Input VAT = VAT payable. So here you can claim the benefit of input service tax.
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