Rate of service tax on tour operator's services
This query is : Resolved
gopal bhargav
(Querist)
24 October 2013
Assesee is providing Tour operator Services.
Assessee has computed his service tax liability after claiming abatement.The Rate of service tax taken by assessee is 3% and 1.2% excluding education cess and secondary education cess.
But when return is uploaded by the assessee on www.aces.gov.in then the return is rejected by the system by showing error as " Advlorem Tax Rate 3, 1.2 entered in Provider Section in Payable Sheet for the Service "Tour operator services" is not Valid.
Whether the Rate of service tax should be @ 12.36% as per Section 66B or there is any other issue????
Reply needed urgent...bcos tommorow is last of efiling.
Assessee has computed his service tax liability after claiming abatement.The Rate of service tax taken by assessee is 3% and 1.2% excluding education cess and secondary education cess.
But when return is uploaded by the assessee on www.aces.gov.in then the return is rejected by the system by showing error as " Advlorem Tax Rate 3, 1.2 entered in Provider Section in Payable Sheet for the Service "Tour operator services" is not Valid.
Whether the Rate of service tax should be @ 12.36% as per Section 66B or there is any other issue????
Reply needed urgent...bcos tommorow is last of efiling.
CA Pradeep Sharma
(Expert)
24 October 2013
You can mention rate @ 12% only. Following example can solve your problem.
Like Service Provided Value Rs. 1000 and service tax @ rate 3%
you can avail abatement under NN 26/2012 vide serial no. 11
So, Service Value = 1000
Abatement Value = 750
Taxable Value = 250
Now you can charge service tax at 12% on Rs. 250 which is equal to 3% of Rs. 1000
For further querry please mail me @ pradeepca23@gmail.com
Like Service Provided Value Rs. 1000 and service tax @ rate 3%
you can avail abatement under NN 26/2012 vide serial no. 11
So, Service Value = 1000
Abatement Value = 750
Taxable Value = 250
Now you can charge service tax at 12% on Rs. 250 which is equal to 3% of Rs. 1000
For further querry please mail me @ pradeepca23@gmail.com
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