The base rate is the minimum amount of earnings that the employee is to receive. The employee may earn additional money by working overtime or by earning incentive bonuses. The amount of money that the employee earns when she works overtime does not increase her base pay amount.
In case of Reverse Charge mechanism the service receiver is either required to pay the whole amount of service tax or part of the amount of service tax.Say for example in case of works contract the service recipient is required to pay 50% of the amount of service tax.n case abatement is applicable then the service tax is not payable on the whole amount of bill. Say for example in case of GTA (goods Transport Agency) the taxable rate is 25% (i.e 75% abatement is allowed).
In case input service tax is paid on reverse charge basis, CENVAT credit for such service is allowed on or after the day on which payment of the value of input service and the respective service tax is made.owever, recipient of such services would remain eligible to take input credit for the service tax paid by him on GTA services as GTA service is still an eligible input service. (ii) Meaning of Input Service 3: Input service is used by the service provider to provide output service.