Dear Sir,

We are Hiring vehicle for our company , (1) should we pay service tax on vehicle hiring ,
(2) if yes , what should be the rate of Service tax
(3) What is the rule of abatement

I'm a Tour Operator & Travel Agent based at Agra. I get my Domestic & International Ticketis issued by an IATA Agent in Delhi. For which my associate agent in Delhi issue Invoice in favour of my company, and charge Service Tax @ 0.6% on Basic Fare (in case of Domestic Tickets and @ 1.2% on basic fare (in case of Int'l air tickets).

I also issue my Invoice for the same ticket to hand over to my clients and charge the same rate of service Tax (as by my associate agent in Delhi.

Means, I charge the same amount of Service Tax, which I have already paid to my Associate Agent in Delhi (who is issuing tickets for my clients).

So my question is that-

1.Would I be entitled for Cenvat Credit of the Service Tax/ Cess, which I have already paid to my Agent in Delhi??

2. If I'm entitled for Cenvat Credit, should I not pay any Service Tax/ Cess (locally in Agra) for the tickets issued thru my agent in Delhi.

3. I came to know that if one claims Abatement, he is not entitled for Cenvat Credit. As I'm charging my clients @ 0.6% and 1.2% on the basic fare of tickets (means I have claimed the Abatement), will I be entitled for Cenvat Credit??

4. If I'm not entitled for Cenvat Credit, I would be paying DOUBLE Service Tax/ Cess (1. to my Agent in Delhi & 2. in Agra locally), where as I'm charging the Service Tax from the client only for one time.

Paying the service tax/ cess for the second time (locally in Agra) would reduce our profits. IS IT JUSTIFIED??

KINDLY ADVISE.

Yours Sincerely,

Anurag

I'm a Tour Operator & Travel Agent based at Agra. I get my Domestic & International Ticketis issued by an IATA Agent in Delhi. For which my associate agent in Delhi issue Invoice in favour of my company, and charge Service Tax @ 0.6% on Basic Fare (in case of Domestic Tickets and @ 1.2% on basic fare (in case of Int'l air tickets).

I also issue my Invoice for the same ticket to hand over to my clients and charge the same rate of service Tax (as by my associate agent in Delhi.

Means, I charge the same amount of Service Tax, which I have already paid to my Associate Agent in Delhi (who is issuing tickets for my clients).

So my question is that-

1.Would I be entitled for Cenvat Credit of the Service Tax/ Cess, which I have already paid to my Agent in Delhi??

2. If I'm entitled for Cenvat Credit, should I not pay any Service Tax/ Cess (locally in Agra) for the tickets issued thru my agent in Delhi.

3. I came to know that if one claims Abatement, he is not entitled for Cenvat Credit. As I'm charging my clients @ 0.6% and 1.2% on the basic fare of tickets (means I have claimed the Abatement), will I be entitled for Cenvat Credit??

4. If I'm not entitled for Cenvat Credit, I would be paying DOUBLE Service Tax/ Cess (1. to my Agent in Delhi & 2. in Agra locally), where as I'm charging the Service Tax from the client only for one time.

Paying the service tax/ cess for the second time (locally in Agra) would reduce our profits. IS IT JUSTIFIED??

KINDLY ADVISE.

Yours Sincerely,

Anurag

I'm a Tour Operator & Travel Agent based at Agra. I get my Domestic & International Ticketis issued by an IATA Agent in Delhi. For which my associate agent in Delhi issue Invoice in favour of my company, and charge Service Tax @ 0.6% on Basic Fare (in case of Domestic Tickets and @ 1.2% on basic fare (in case of Int'l air tickets).

I also issue my Invoice for the same ticket to hand over to my clients and charge the same rate of service Tax (as by my associate agent in Delhi.

Means, I charge the same amount of Service Tax, which I have already paid to my Associate Agent in Delhi (who is issuing tickets for my clients).

So my question is that-

1.Would I be entitled for Cenvat Credit of the Service Tax/ Cess, which I have already paid to my Agent in Delhi??

2. If I'm entitled for Cenvat Credit, should I not pay any Service Tax/ Cess (locally in Agra) for the tickets issued thru my agent in Delhi.

3. I came to know that if one claims Abatement, he is not entitled for Cenvat Credit. As I'm charging my clients @ 0.6% and 1.2% on the basic fare of tickets (means I have claimed the Abatement), will I be entitled for Cenvat Credit??

4. If I'm not entitled for Cenvat Credit, I would be paying DOUBLE Service Tax/ Cess (1. to my Agent in Delhi & 2. in Agra locally), where as I'm charging the Service Tax from the client only for one time.

Paying the service tax/ cess for the second time (locally in Agra) would reduce our profits.

KINDLY ADVISE.

Yours Sincerely,

Anurag

If a Company pays freight to 'Goods Transport Agency', Then company is liable to pay Service Tax to Govt.

So, the service tax amount to be taken as 'input credit or output Credit' if take as putout credit then it can be setoff to input credit?

sir ,
we are service provider can we claim the input service tax on input service like rent , courier charges , telephone charges 100% our turnover is not more than 15 lack.

We are providing taxable service and our turnover is not more than 15 lacks can we claim the input credit full on input services like telephone charges , courier charges , rent etc can u give any examle.

Dear Sir,

I have the following query-

Being a Tour Operator & Travel Agent, I need to take services from my sub-agents for my clients. For which they issue Invoice in favour of my company and charge Service Tax on the service provided.

Kindly advise, if I can take Cenvat Credit of the service tax, I have paid already to my sub-agent.

Here, I would like to mention that I'm charging my clients @ 2.58% on the Total Tour Value. Means I'm claiming 75% Abatement, applicable on Tour Operator's Services.

Kindly advise.

Your's sincerely- Anurag

Dear Sir,

Thnax a lot for your quick reply.

In continuation to my earlier query, I have the following query-

Being a Tour Operator & Travel Agent, I need to take services from my sub-agents for my clients. For which they issue Invoice in favour of my company and charge Service Tax on the service provided.

Kindly advise, if I can take Cenvat Credit of the service tax, I have paid already to my sub-agent.

Here, I would like to mention that I'm charging my clients @ 2.58% on the Total Tour Value. Means I'm claiming 75% Abatement, applicable on Tour Operator's Services.

Kindly advise.

Your's sincerely- Anurag

I'm a Tour Operator & Travel Agent providing the following services-

1. Domestic & Inbound Tour Packages
2. Hotel Bookings
3. Domestic Air Tickets
4. International Air Tickets

I have a registration of Service Tax under Tour Operator Category.

I have been filing details of Service Tax for all the above mentioned services in the same Return (mentioning the different applicable rates of Service Tax for different services).

Now my query is-

1. Is filing of One Return for all the four services allowed?? OR should I file 3-4 Returns for the above mentioned services??

2. Do I need separate registration for International Air Travel Service and Domestic Air TRavel Service?

Kindly advise on the above queries.

Your's Sincerely

Anurag