Dear Sir / Madam

Greetings of the Day !

My company carries the Hospitality Business & have Service Apartments Hotels.

We need the opinion on the following points regarding the service tax.

Present Tax Structure for the Banquet hall with the food supply

PRESENT TAX STRUCTURE FOR BANQUETS
PARTICULARS AMOUNT SERVICE CHG. SERVICE TAX VAT TOTAL TAX INCL. SERVICE CHGS
FOOD 100.00 5.00 6.48 13.13 24.61%
SOFTDRINK 100.00 5.00 6.48 13.13 24.61%
LIQOUR 100.00 5.00 6.48 21.00 32.48%
MISC. 100.00 5.00 10.81 0.00 15.81%

• 40% abetment is taken on F & B for Service Tax.
• Vat charged on Full F & B including service charge
• No abetment is taken on Misc. under convention

In the above case the total tax comes to 24.61% on F&B & 32.48% on liquor which is very high.
Even we cannot take Service Tax Input Credit being the abatement taken.

We need the opinion in the above case:

• Can we make one bill defining the service (hall rental) & food sale with the respective taxes ?

• What will be the basis for service : sale ?

• Can we split the bill for service (hall rental) & food sale? If we can split the bill what will be the basis for services : sale.

• In case of Out Door Catering what will be the tax structure.
• Can we take input credit on misc., its been fully taxed

Please reply with the details so that all the confusion gets over. Thanks in advance

BY MISTAKE ASSESSEE HAS PAY EXCESS PAID SERVICE TAX SO,HOW I WILL DISCLOSE IN FORM NO. ST-3 AN EXCESS AMOUNT IN WHICH COLUMN?

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