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Service Tax Query

Queries 720 views 2 replies

What is the criteria for taking 40% credit of service tax and under which rule? 

Replies (2)

section 93 of the Finance Act, 1994, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by a tour operator from so much of the service tax leviable on such operator, as is in excess of the amount of service tax calculated on 40%. Of the gross amount charged from any person by such operator for the services provided in relation to a tour, where the tour operator provides a package tour to any person and the bill issued for this purpose indicates that it is inclusive of charges for such a tour.

All credits are under the cenvat credit rules. There is no rule for 40% credit. Credit can be availed for ST charged and if that happnes tobe on 40% so be it.


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