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Tour operator abetment

Service Tax (Legacy) 623 views 4 replies

We have a client who is travel agent, he buy holiday packages from a consolidator and on gross amount he pays 3.09% service tax. On selling the above holiday package by adding his service charge/ markup he charges 3.09% on total amount.

For E.g.

purchase is RS 1000 + 3.09% service Tax  = Rs 1030.90

Sale is Rs 1200+3.09 % service Tax           = Rs  1237.08

So the service tax paid to supplier is 30.90 and collected is 37.09, so should he deposit service tax ,the differance or the total amount collected.

Please advise.

 

Replies (4)

You have to pay full on output no input credit available

Dolika would you pls explain why credit won't be available as going by the input service definiton credit for any service used by service provider for providing output service is available. So, i think Raj can take credit for the service tax that his client pays on input service.

Am relying on - https://www.dateyvs.com/service-tax/cenvat-credit-and-service-tax/cenvat-credit-on-input-services-and-goods/

It is clearely written in the exemption notification no 26/2012 that you take abatement only if condition satisfy that you have not taken any ccr credit to pay such taxes as per ccr rules 2004 

yup..i checked...u were right Dolika..

Raj, it seems you will have to pay the full amount.

 

Regards


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