Menu
Service tax on air travel agent
Sudhir Soni
Finance & Taxation
27
If we opt Compositon scheme of Air Travel Agent service tax there is Option to pay service tax at flat rate on ‘basic fare’ @ 0.7% in case of domestic booking and 1.4% in case of international booking – plus education cess and there is No restriction on availment of Cenvat credit also under rule 6(7) of STR
But my query is that if we charge extra service charges (other than commission received from airlines) from customer on that ticket then we charge service tax also on the same or not ?
Replies (5)
No, the rate would require to apply only on basic fare.
Sir,
Can we take credit of vender's service tax who is also leving tax on basic rate.
Yes, you can avail Cenvat Credit on this transtion.
It, means our service tax payable on air ticket is nil, due to our input or output service tax is same
i.e. basic fare on international ticket is 1,000/-
Output ST - 14
Input ST - 14
Air Tkt Service Tax Liabilities - Nil
Dear Sir / Madam,
Incometax rate(%) announced for the f year 2016-17 ?
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
