Service tax for aggregators - question

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)
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.
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.

Does the rule state Rs. 500 anywhere ? (I dont seem to find ths in the amendment anywhere).

The question is

* Are we (aggregator) liable to charge Service Tax on our convenience fee + fee that we charge on behalf of our client ?

What does 2015 amendment say about this ?

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