Service tax of a travel agent bill.

1442 views 2 replies

Hai everybody, I have a doubt on a Travel Agent bill.

Travel Agent is charging the Service Tax of 12% on 40% of the bill amount.

For example: If bill amounting to Rs 2000/- then he will charge 12% on 800/-.

So, pls let me know the criteria or rule behind this.

Regards.

Replies (2)

Travel agent (Service provider) will charge the service tax @ of 12.36% on 60% of the bill amount and recipient will pay the service tax @ 12.36 on 40% of the bill amount.

Hi, 

I agree with AK SINGH sir openion, We have also received one bill like Ser.Tax @ 12% of 40% of subtotal value.

Actually if Service Provider not having ST2 registration, then Service Receiver may take 60% abatement and pay ST @ 12.36 on 40% value.

if SP has a ST2 registratant means SP has to charge ST on 60% value, rest of 40% of tax liability to be paid by SR.

 


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