Bu provided by a travel agent to another travel agent? st le

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2013 Take it as a challenge!!! URGENTLY REQUIRED

Is a bus provided on mileage or contract basis by a travel agent to another travel agent for ultimate providing service to a client liable to service tax by bus owner?

if yes the reply section under which it is clearly clarified....

if no the reply the exemption notification under which this is exempt....

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

02 June 2013 Yes it is covered by ST. Since the travel agaent is providing services to other travel agent it is a service and accordingly he will charge service tax from the service taker the travel agent No. 2 who will provide the services shall charge ST from the customer.
Let us take the example If the Travel Agent No. 1 provides bus and charges 10,000 and he has to charge ST @12.36% on 10,000. The Travel Agent No. 2 collects Rs. 20,000 from the customer then he has to charge ST @ 12.36% from the user but he will deposit service tax difference between the amount charged 20,000 and paid on 10,000.

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2013 sir the cevvat cannot be claimed as both the parties claim abatement of 60%. sir there will be a double taxation in this case.

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