ST query

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2010 One of the Tour Operator/Travel Agent is also engaged in providing the arrangement of Event Management he arranges from event management company and gets commission & further he charges more from Client ex.Event Service booked from Event Service Provider at Rs 1,00,000 & gets commission of Rs 5000 now he charges the same to the client as Rs 1,10,000,
In the given case how Service Tax will be determined & Under which Category it will be taxable as registered as Under Tour operator Category

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

10 September 2010 Even Management is separate taxable service categary, so register under that

tarun goel

tarun goel (Expert)
Follow

11 September 2010 and he will have to pay service tax on the amount charged from service receiver. in this case on Rs.1,10,000/-.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

11 September 2010 yes. ST need to pay net of the gross amount received = Rs.110000/110.30x10.30

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2010 in the given situation only doing business of broking between event company and client?????????????

Pradeep Jain

Pradeep Jain (Expert)
Follow

11 September 2010 He has to pay service tax on complete amount of 1,10,000 but he will get the credit of service tax paid by event management company. secondly, as he is getting commission from even management company then he has to pay service tax on commission of 5,000/- under BAS. He has to get his registration amended in these services.

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2010 Rs 1,10,000/- will be taxable under which head as the person is not doing the business of event management only broking???

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now