Basic Service tax questions

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Deepak

Proprieter

22 Points Posted on 06 May 2009

Dear Experts,

I am seeking your valuable expert advice on the following.
I am starting a new travel agency business under a proprietership firm which was until last year doing trading and the turnover was approx 3 lakhs

Q1) Since I am not a service tax assessee at the moment, the invoice that I will raise, would they have a service tax component?

Q2) What are the prevailing rates for travel agencies, there are certain abatements also - I am unsure which are the latest as there are several on the internet, a pointer to the updated rates would be very helpful

Q3) When do I register for Service tax, when the turnover reaches 8 lakhs, or when the taxable turnover (after accounting the abatement for travel agents) reaches 8 lakhs?

Thank you in advance.

Regards,

Deepak

Replies (2)

Dinesh Dad

Articleship

22 Points Posted on 06 May 2009

What is the service tax rate for car rental business

mamta

student

34 Points Posted on 08 May 2009

Originally posted by :Dinesh Dad
"	What is the service tax rate for car rental business	"

Renting of cars would fall under the category of "Renting of Cab service". At present, an exemption is available on such service on 60% of gross taxable value. Thus the tax is charged on 40% of gross taxable value. Thus, Service tax is applicable @ 10.3% on 40% of taxable value,i.e,4.12% (effectively)on the gross taxable value.