Abatement - Services by foreman of chit fund - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 8 Services by foreman of chit fund (w.e.f. :1.4.2016) Scope of abated service - N otification no 26/2012-ST dated 20.6.2012 From 1.7.2012 to 10.7.2014 8. Services provided in relation to chit Effective Rate of tax : 70% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. From 11.7.2014 to 31.3.2015 - Notification No. 08/2014 - Service Tax dated 11th July, 2014 8.Services provided in relation to chit Effective Rate of tax : 70% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 From 1.4.2015 to 31.3.2016 - Not. 08/2015 - Dated 1-3-2015 8.[***] OMITTED Amendment notes w.e.f. 1.4.2015 - Abatement has been withdrawn from services provided in relation to chit. Consequently, Service Tax was to be paid by the chit fund foremen on the full consideration received by way of fee, commission or any such amount. They would be entitled to take Cenvat Credit. From 1.4.2016 - Not. 08/2016 - Dated 1-3-2016 8.Services provided by a foreman of chit fund in relation to chit Effective Rate of tax : 70% of Service Tax prescribed u/s 66B Conditions: CENVAT credit on inputs, capital goods and input services, used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004 Amendment notes w.e.f. 1.4.2016 - Services provided by foreman to a chit fund under the Chit Funds Act, 1982 to be taxed at an abated value of 70% [i.e., with abatement of 30%], subject to the condition that Cenvat credit of inputs, input services and capital goods has not been availed. Definitions and meanings: From 1.7.2012 to 19.5.2015 - Deleted by Not. 13/2005 - Dated 19-5-2015 a. chit means a transaction whether called chit, chit fund, chitty, kuri, or by whatever name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to a prize amount, INSERTED BY FINANCE ACT 2015: W.e.f. :14/5/2015 65B [(23A) foreman of chit fund shall have the same meaning as is assigned to the term foreman in clause (j) of section 2 of the Chit Funds Act, 1982 (40 of 1982);]