Selection of taxable service under service tax.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2013 Kindly advise me how to deal with below detail issue with respect to service tax.

one of my relative is running his own tour travel agency i.e. basically he is providing services mainly for tour travel packing both domestic as well as international packages, trail ticket booking (very few) and air travel ticket (very few). now he wanted to avail service tax number for his proprietorship firm. my queries are:

1. do he need to mention all services in ST1 form. like at service tax site there are separate service tax head for air travel agent, rail agent and tour operator etc. How he will come know that under which service head all his service will fall. Mentioning Tour Operator is coverage of all his services ?

2. He is availing these package in bluk from big companies like makemytrip etc. and further offers it to customer. they ae charging them service tax @ 3.09%. how it is possible. How & from where this rate of 3.9% s arrived whereas in most of services ae liable for tax @ 12.36%.

3. What is funda behind abetment of service tax. One service tax credit i know that a person calim when he take service from some one else and charge service tax from his own customer s paid service tax is adjustemnet through service tax credit.

kindly guide me as i m too much confuse how t select service or mention all service and rate of service tax...

please guide.

Regards
Shalini

CA Pratik Shahnand

CA Pratik Shahnand (Expert)
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08 November 2013 Dear Shalini,

You will have to take seperate registration for all the services that you have been provided and maintain the records for the same.

Tour operators have been given 75% abatement with certain contions which you will find in below mentioned links.

https://www.servicetax.gov.in/notifications/notfns-2012/st26-2012.htm

https://www.servicetax.gov.in/st-profiles/tour-opr.pdf

There are certain services like tour operators, GTA, Rent a Cab, Hoteliers, etc which are notified for some percentage of abatement by the service tax department. For such services Service Tax rate will be calculated after deducting the percentage of abatement.

CA Pratik Shahnand
pratik.shahnand@gmail.com

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