SERVICE TAX RATES

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2010 Dear Sir,

We are Booking Airtickets through Agents, could u tell me at present what is the service tax rate on Airticket, & provide notification Also

Regards
Raghavendra

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 June 2010 Presently 10.30%

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2010 mr ramesh Krishnan,

As per service tax Rules 6(7) Domestic Travel 0.60+e cess& h e cess, Foreign trav

on the basic fatre 1.20+e cess+h e cess

(7) The person liable for paying the service tax in relation to the services provided by an air travel agent, shall have the option, to pay an amount calculated at the rate of [0.6%]11of the basic fare in the case of domestic bookings, and at the rate of [1.2%]11of the basic fare in the case of international bookings, of passage for travel by air, during any calendar month or quarter, as the case may be, towards the discharge of his service tax liability instead of paying service tax at the rate of specified in Section 66 of Chapter V of the Act and the option, once exercised, shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be changed during a financial year under any circumstances.

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