Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Service Tax Abatement

Tahseen Tabassum (CA-FINAL) (644 Points)

03 April 2009

Hai friends..

Can anyone let me know what is the Service Tax Abatement available for the supply of manpower....

Reply
Follow
Share

10 Replies

(Guest)

plz clear the question i am not geting it,.......

Upgrade to CAclubindia Pro. Subscribe Now!

Venkatesh Gupta (Jr. Manager Finance) (77 Points)
Replied 03 April 2009

I believe Ali's point is correct. Normally Abatement means some portion of total service gets exemption. And this will be fixed by the govt. But i didint get for manpower ...how it ...

(Guest)

May be she is asking for excemption of small service provider..............

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 04 April 2009

No there is no abatement in manpower services. I presume whether the salary, PF, ESI can be deducted. The settled position is that the same shouldbe included.

It would have been ideal that there was an abatement since such suppliers only get a commission based on the total salaries. However the industry should represent for this to happen.

CA. Krishna Sagar. K (Finance Manager ) (84 Points)
Replied 04 April 2009

Hai,

As per the service tax statute... abatement is a exemption on some part of the service provided by the service receiver. Some of the abatement services are construction, mandap keeper, caterer, cab transporter etc., There are no abatement on the man power service.

the service receiver has to pay the service tax on the total amount of the service provided by the provider...

Upgrade to CAclubindia Pro. Subscribe Now!

Tahseen Tabassum (CA-FINAL) (644 Points)
Replied 04 April 2009

Thank You All

vinoth (SENIOR EXECUTIVE) (30 Points)
Replied 20 January 2011

hi friends

is there any abatement available for franchise service?

whether basic limit of 10 lac is available for franchise service ?

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 20 January 2011

There is no abatement available in case of franchise Service. Further basic limit of 10 lakh is also not available to franchiser as he is providing service under brand name of other.

Regards,

Pinky Agarwal.