Abatement on Air Ticket Service

Meeta,

You want to know the quantum of abatement but  not mentioned:

a) on which Air Ticket whether it is domestic or iternational ?

b) abatement for which period ?

Anyway I am giving in details of abatements for your knowledge:

Period                                  Demestic                    International

14.5.03 to 9.9.04                 0.4%                               0.8%

10.9.04 to 30.04.06             0.5%                               1.0%

1.5.06 onwards                    0.6%                                1.2%

Hope this will serve your purposes,

Thanks and welcome,

S. Banerjee

I'm a Tour Operator & Travel Agent based at Agra. I get my Domestic & International Ticketis issued by an IATA Agent in Delhi. For which my associate agent in Delhi issue Invoive in favour of my company, and charge Service Tax @ 0.6% on Basic Fare (in case of Domestic Tickets and @ 1.2% on basic fare (in case of Int'l air tickets).

I also issue my Invoice for the same ticket to hand over to my clients and charge the same rate of service Tax (as by my associate agent in Delhi.

Means, I charge the same amount of Service Tax, which I have already paid to my Associate Agent in Delhi (who is issuing tickets for my clients).

So my question is that-

1.Would I be entitled for Cenvat Credit of the Service Tax/ Cess, which I have already paid to my Agent in Delhi?? 

2. If I'm entitled for Cenvat Credit, should I not pay any Service Tax/ Cess (locally in Agra) for the tickets issued thru my agent in Delhi.

3. I have heard that if one claims Abatement, he is not entitled for Cenvat Credit. As I'm charging my clients @ 0.6% and 1.2% on the basic fare of tickets (means I have claimed the Abatement), will I be entitled for Cenvat Credit??

KINDLY ADVISE.

Yours Sincerely,

Anurag