Service Tax on Air Ticket

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This query is : Resolved

DEEPAK GOYAL (Querist)

23 July 2010 As per union Budget 2010 service tax is applicable on airtickets w.e.f. 01/07/2010. but my question is that how we can take the cenvat of service tax on airtickets. Tickets booked online don't have the bifrication of service tax also the ticket don't have service tax no. of airlines. please clerify this.

Thanks

VINOD ARORA

VINOD ARORA (Expert)

03 August 2010 You may request the airline company to issue a certificate bifurcating the service tax amount, which can form basis for claiming input credit. Further, it is not that you may get credit for service tax in the same tax period, you may avail the same later also, within the same financial year pereferably. In case the matter rolls over to next year, then please do not charge the amount of service tax to cost and rather keep the same as recoverable as offset, as and when docs are completed the same may be availed.

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