Key Exemptions and Abatements under Service Tax Law

Under the service tax law, there are various exemptions and abatements available to taxpayers. Some of the key ones include:

• Small Scale Exemption: Services provided by small scale service providers with turnover below a certain threshold are exempt from service tax.
• Export of Services: Services provided to clients located outside India are exempt from service tax.
• Mega Exemption: Certain specified services such as healthcare, education, and public transportation are exempt from service tax.
• Abatements: In certain cases, the taxable value of services may be reduced by a certain percentage, leading to lower service tax liability.

It is important for taxpayers to be aware of these exemptions and abatements in order to comply with the service tax law effectively.