Under service tax act general exemptions are allowed at fixed percentage for few services (List is given as under) .This fixed % is called abatements .This abatement can be claimed by the service provider if he has not claimed the cenvat credit on input services/goods.
Suppose a person has provided a service of 100 Rs and abatement on that service is 30 % than he can pay tax only on 70 % amount . Further exemption limit of 10 lacs is also counted after allowing the abatement . I list of various service in which abatement is allowed under service tax act is given below for your ready reference .
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