Dear Sir/Madam,
WE PAID AS ADVANCE OF RS. 3 LAC TO ABC COMPANY FOR FLIGHT BOOKING, AFTER THEY SUBMIT A BILL (457996-ADVANCE 300000=157996*12.36=177524), SO MY QUESTION IS, IS THIS CORRECT THAT THEY CHARGE A SERVICE TAX ON BALANCE AMOUNT OF RS. 157996, IF THIS IS CORRECT, WHY?
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WHAT IS THE CORRECT CALCULATION OF SERVICE TAX, IF WE PAID AS ADVNACE OF RS. 300000 AGAINST FLIGHT BOOKING.
It is totally incorrect. There are special rates of ST for flt.
Service Tax has to be levied only on part of commission charges charged by the commission agent. In normal cases booking agent do not charge the commission from client but directly from the airlines whose ticket has been booked. In this case invoice of booking agent do not display service charges. In such cases service tax will be levied at below mentioned percentage:
In domestic booking @ 0.70 % of basic fare and in international booking @ 1.40 % of basic fare.
calculate the Invoice value
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
