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different rates of service tax?

kinnary (student) (231 Points)

17 October 2007

hi i have be of the view that there is only one flat rate of 12.24% of service tax(foe F.Y 2006-07).But recently in one audit i came across a bill given by a cab service provider,where S.T of 4.944% is laid.so are there any slabs for s.t or any different rates for various services.

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14 Replies

Shaily Jain (Chartered Accountants) (1054 Points)
Replied 17 October 2007

no there is only one rate of ST. In the case which u ve seen what kind of service they provided?

(Guest)

that may be due to abatement

MAHENDRA IYER (SERVICE) (315 Points)
Replied 17 October 2007

There are many category of service under which certain abatements are given.

Mayur A.Vora (CHARTERED ACCOUNTANTS) (24 Points)
Replied 18 October 2007

FOR TRANSPORTER RATE IS DIFFERENT ??

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 18 October 2007

The service rendered by the serivce provider is "Renta a Cab Service". RENT- A- CAB SCHEME OPERATORS Q.1 Who is a "Rent a cab scheme operator"? Ans. "Rent a cab scheme operator" is a person who is engaged in the business of renting of cabs. The new definition of rent a cab scheme operator introduced in the Finance Act, 1998 , is effective from 16th October, 1998. This definition is wider in scope than the earlier definition which only included a person who was the holder of a licence under the Rent-a-Cab-Scheme, 1989 framed by the Central Government under the Motor Vehicles Act, 1988 as a rent-a-cab-scheme operator. Under the Rent-a-Cab-Scheme, 1989 framed under the Motor Vehicles Act, 1988, a licence is granted only in case a person has a minimum of 50 cabs. This meant that a person who had less number, say 5 or 10 cabs and was engaged in the business of car rental, was not liable to pay service tax on the services of renting of cabs. Consequent upon the revised definition, such persons who are engaged in the business of renting of cabs, even if not covered under the Rent a Cab Scheme, 1989, framed under the Motor Vehicles Act, 1988, will also be required to pay service tax on the services of renting of cabs irrespective of number of cabs rented out by them. Q.2 What is the taxable service in case of Rent- a- cab- scheme? Ans. The taxable service rendered by a Rent a cab scheme operator means any service provided to any person, by a rent a cab scheme operator in relation to the renting of a cab. Q.3 What is the value of service in case of Rent a cab scheme? Ans. The value of taxable service in relation to the service provided by a Rent a cab scheme operator to any person, is the gross amount charged by such operator from such person for services in relation to the renting of a cab and includes such rental. Any other charges billed to the customer such as processing charges, administrative fees, charges for providing extra accessories or providing other value added services such as a provision of driver etc. shall also be includible in the gross amount chargeable to Service Tax. However, Service Tax will not be payable in cases where a bill is raised on a Rent a Cab Scheme operator, by another rent-a-cab scheme operator who has sub-let the motor cab to the latter operator provided the principal operator pays Service Tax on the amount billed to his client for renting out the motor cab so obtained by him. This service is subject to abatement of 60% So if you charge service tax @ 12.36% on 40% of the taxable amount you get the value as under assuming taxable value as Rs. 100 100-60 =40*12.36%=4.944 Regards Dayal

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(Guest)

what is the rate of tax for air ticket service & IATA Training centre.

Ajay Jain (Advocate) (83 Points)
Replied 05 November 2007

HI M FULLY SATISFIED WITH MR. DAYAL'S WORK GOOD

CA Gnanika (CA ) (485 Points)
Replied 05 November 2007

Hi , Dayal sir but in the new ST 3 form we find 4- 5 different rates of service tax then what are those rates . Do v have different rates for different services provided

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 06 November 2007

Dear Gnanika

The diffeence rates shown in the ST 3 are nothing but the different slabs that have increased during the time

Initially it was 5% then it was increased to 8% then 10% and now 12% these are the basic rates equally Ed Cess and SHE cess have been introduced as 2% and 1%

But for your acedemic knowledge, whereever any service provider enjoys any abatement then the % will vary in terms of levy for eg. lets say air travel agent has the option to pay 1.2% of the basic fare in the case of international booking instead of paying the prescribed service tax

(Guest)

Hi.

(Guest)

Originally posted by :kinnary
"	hi i have be of the view that there is only one flat rate of 12.24% of service tax(foe F.Y 2006-07).But recently in one audit i came across a bill given by a cab service provider,where S.T of 4.944% is laid.so are there any slabs for s.t or any different rates for various services.	"