Invoicing of air ticket by sub travel agent

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Yogesh Kumar Sahu (Querist)
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21 April 2014 For Example
if a sub traval agent purchase air ticket from main agent o Rs.10000
& sell this to customer of Rs. 12000
In this he gets 2000 As income(Commission)

In this situation how he will invoice to consumer & how service tax charged

Sandeep Mangal Agarwal

Sandeep Mangal Agarwal (Expert)
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22 April 2014 Dear Yogesh,

ST is applicable only on Rs. 2,000 because Rs. 10,000 paid against Ticket Charges not for any services.

Preparation of invoice should disclose the amount required to be collected from customer including payments made to Main Agent and also disclosing separately the service tax liability on rs. 2,000.

Thx.

Yogesh Kumar Sahu

Yogesh Kumar Sahu (Querist)
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22 April 2014 Dear Sandeep ji
would u plzZ disclose
how the sub agent make the invoice....
& if he dont want to show his commission then any other option is available

Sandeep Mangal Agarwal

Sandeep Mangal Agarwal (Expert)
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22 April 2014 No , he has to show the Service tax amount in the Invoice as per section 12 A of Central Excise Act as also applicable in case of Service Tax.Also as per Circular No. 97/8/2007 dated 23.08.2007 the E Cess and S H E Cess should be shown separately.

The Invoice should be prepared as per Rule $A of ST Rules as follows:

(1) Every person providing taxable service shall,not later than thirty days from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of taxable service provided or agreed to be provided and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely :-
(i) the name, address and the registration number of such person;
(ii) the name and address of the person receiving taxable service;
14[(iii) description and value of taxable service provided or agreed to be provided; and]
(iv) the service tax payable thereon

So there is no such standard format prescribed by Govt. You can adopt any invoice as per normal business practice which contains the aforesaid mentioned details.

However Invoice Should contain date although provision for date is not mentioned by Rules

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Yogesh Kumar Sahu

Yogesh Kumar Sahu (Querist)
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24 April 2014
Thank You Very Much Sir

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