we are booking tickets for our clients we buy them from various agents or internet (airline websites) generally the agents from whom we buy tickets charge us service tax @ 1.30 on base fare without airline taxes
for example if ticket base fare is 10000/-
service tax charged by agency is 130/-
We end up paying Rs 10130/-
we sell these tickets to our clients say for 11000/- . so how much service tax should be charged and with what narration or are we admissible for Cenvat credit
we bought ticket for 10103 and sold it for 11000/ + ( 113/- service tax) = 11113/- in short we end up paying double service tax.
As i understand we take abetment i.e charge service tax @ 1.03 only so can we take cenvat credit or not