service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2010 Dear Respected Experts,

We are in helicopter chartering business. We have our own helicopter and provide our service to the various customers.I want to let you know that our company is registered with ST Dept. in category "Air Transport of Passengers" and paying service tax @10.3% from April 2010(i.e. Air transport of passengers was exempted from service tax till june 2010 and now it is decided by ST Dept. that they have to pay service tax Rs. 103/- per passenger per per ticket from july 2010 onwards). We do not issue tickets to our passengers. We raise our invoice to our client on flying hours basis not on number of passengers. Now I need your kind guidance should we change our category to "Air travel agents"?(i.e. we are not air travel agent, we have our own helicopter, And there is no service category for aircraft charters in service tax category list). What action should we make to rectify this?

Also tell us do we need to change our category for the service tax we have already paid to service tax dept from april till october? If yes, what is procedure for the same?

Pls reply soon and guide me on the same.

Thanks n best regards

Arbind Aggarwal

Arbind Aggarwal (Expert)
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25 November 2010 This service will be classified under the Category - Supply of tangible goods for use and tax is payable on the gross amount charged @ 10.3%.

CBEC Letter no. 20/Comm(ST)/2009 dated 9.2.2009 has also clarified this position.

You are not an airlines and can not pay tax under that category i.e. 103/- per ticket etc.

Correct your classification at the earliest other wise it may result in huge liability with interest and penalty. May consult me for advice if required.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2010 Thank you so much for the reply Sir. Please let me know your email id or mob no, so that i can contact you and tell you the thing in details.

Regards

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