I would like to know if the revision in rate of service tax by way of reduction of 2% applies only to cases where service tax of 12.36% is levied or there is some relaxation in other cases where rate of service tax is different like incase of airline ticketing business, foreign exchange business etc. views solicited thanks
No changes in other rates.
In case of air travel agent for domestic booking theservice tax rate erstwhile was 0.618% and for international booking it was 1.236% .Now in the light of the revision from 12.36% to 10.3% what rate needs be charged.Also for GTA should it be proportionately charged as 12.36% for prior to 24.02.09 and 10.30% after 24.02.09.
There are various notification which gives abatement in value- the benefit of reduced rate is available on those service. When the notification reduces the rate itself (i.e. 4% in case of composition scheme in work contract), no benefit is available.
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