Mohammed Shahid (MANAGER) (122 Points)
22 April 2014Sir,
A non IATA Air Travel Agent buy ticket for their customer form IATA Agents
Eg:- Ticket (Including Basic Fair & Others) - Rs. 20,000
Supplier allows a discount of Rs. 1,000
Net Payable to Supplier (IATA Agent) by Non IATA Agent is Rs.19,000
Supplier also collect service tax in respect of discount Rs.123.00 (Total Payable -19,123.00)
Is this Service Tax Paid to Supplier allowed by statute ?
How he could make his service tax return if total income exceeds 10L
Mohammed Shahid
(MANAGER)
(122 Points)
Replied 22 April 2014
Client is a non IATA Agent...
Buys ticket for Customers
Eg:- (Issued a Ticket to Customer @ 20,000 on which Supplier allowed a discount of Rs.1000, Normally have to pay supplier Rs.19000, but supplier collects Service Tax on Discount allowed Rs.123. Hence Paid to Supplier Rs.19123)
Entry
Cr. Supplier -19130
Cr. Discount - 1000
Dr. Service Tax Paid -123
Dr. Customer -20000
Is this service tax paid to supplier allowed in Cenvat Credit
Is Reverse Charge Mechanism apply here
Is we have to pay service tax again
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