Service tax for aggregators - question

740 views

Save Share

Brinoj

23 Points Posted on 23 March 2015

My client is planning to start an online aggregator services for Sports complex reservation (similar to how Redbus is for Bus bookings / Bookmyshow is for movie ticket bookings).

They intend to collect the booking amount on behalf of Sports complex (lets say 500rs)and a convenience fee from customer for every transaction (lets say 10rs).

Should the service tax be collected on Rs.10 ? or Rs. 510 ?

What should the agreement be between the aggregator and the Sports complex (if aggregator does not want to collect tax on behalf of sports complex)

Replies (2)

CA JITENDER CHAUHAN

PRACTISING CHARTERED ACCOUNTANT

70 Points Posted on 24 March 2015

As per budget 2015 following amendment is made in the service tax Service tax to be levied on services by way of admission to entertainment event of concerts, non-recognised sporting events, pagents, music concerts and award functions, if the amount charged for admission is more than Rs. 500. So try to reduce the overall price to 500 otherwise servie tax will be levied in it.

Brinoj

23 Points Posted on 25 March 2015

Originally posted by : CA JITENDER CHAUHAN
	As per budget 2015 following amendment is made in the service tax Service tax to be levied on services by way of admission to entertainment event of concerts, non-recognised sporting events, pagents, music concerts and award functions, if the amount charged for admission is more than Rs. 500. So try to reduce the overall price to 500 otherwise servie tax will be levied in it.