Reg:Service Tax treatment
This query is : Open
06 January 2010
One of the Service Provider has developed online cinema tickets booking services online,say A(Service Provider). Now A is providing services to Theatre B for assisting in the online booking of tickets.
The actual price of the ticket is Rs. 50/-per ticket.Now when the tickets are sold online, it costs Rs. 60/- to the viewers.This Rs.10/- is the service charge charged by A, the service provider, which is to be paid by B, the theatre owner.
Out of Rs. 10/- the Service Provider will keep Rs. 7 and give away Rs. 3 to the Theatre owner.
Rs. 3/- is in the nature of revenue sharing.
Now my query is on what amount, the Service Tax should be charged???On Rs. 7/- or on Rs. 10/-???
Kindly suggest, its urgent.
Regards
Priya Sharma
The actual price of the ticket is Rs. 50/-per ticket.Now when the tickets are sold online, it costs Rs. 60/- to the viewers.This Rs.10/- is the service charge charged by A, the service provider, which is to be paid by B, the theatre owner.
Out of Rs. 10/- the Service Provider will keep Rs. 7 and give away Rs. 3 to the Theatre owner.
Rs. 3/- is in the nature of revenue sharing.
Now my query is on what amount, the Service Tax should be charged???On Rs. 7/- or on Rs. 10/-???
Kindly suggest, its urgent.
Regards
Priya Sharma
06 January 2010
Rs. 7 as it is net amount of income or commission received by the service provider.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- EXPORT COMMERCIAL INVOICE HSN CODE
- GST Rate for Catering Services
- LIC maturity claim whether taxable
- TDS AND ITR ISSUE
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
