23 April 2016
While filing ST returns for an Air Travel Agent who computes ST at 0.7% on domestic tickets and 1.4% on International Tickets, how do we show Swach Bharat Cess in the return?
As per Notification 25/2015, if we enter the SBC rate as 0.025, excel does not validate and gives error saying invalid rate. Is it ok to enter rate as 0.5% and manually enter the tax amount?
24 April 2016
The Rate of Service Tax is just one - 14% ST and 0.5% SBC. Any other rate filled in the excel utility will show error. That said, the valuation of the taxable service varies. For Air Travel Agents the valuation of service is 0.7% of Base Domestic Fare and 1.4% of the Base International Fare. This valuation is per provisions of Rule 6 of the Service Tax Rules 1994.
Hence when you file the excel utility downloaded from ACES fill up Rows B1.1 to B1.6 as per your sales /advance ledgers. This will show your total turnover. Permitted deductions can be made. Therefore in Row B1.12 (Any other amount claimed as deduction, please specify) you fill up Deductions as per Rule 6(7) of the Service Tax Rules 1994 and the amount.claimed as deduction 95% of Domestic ticketing and 90% of International ticketing.
For example suppose a ticket with base fare Rs.10,000/- has been booked in the International Sector. In Row B1.1 the amount filled is Rs.10,000/- and in Row B1.12 the amount is entered Rs.9,000/-. In Row B1.14 Net Taxable Value will be shown as Rs.1,000/- and applying the service Tax Rate of 14% and SBC Rate of 0.5% the tax payable would be Rs.145/- which works out at 1.45% of the base fare.
I hope I have been able to explain the problem to your satisfaction.
CAclubindia
