My friend is starting a tour & travel agency. His confusion is regarding the payment of Service tax. At what time he should start paying service tax (threshold limit)?? whether he should pay on total invoice price which includes expenses like hotel accommodation for tourist, transportation, guide charges etc (package tour) or on pure income (ie, profit)???
Please help me in this regard with necessary tax information in this field...
Service tax will be chargeable on the value of taxable services at 12.36% (including 3% Cess). Service tax will be payable on accrual basis/completion of service or receipt basis, whichever earlier.
Respected Sir,
I think the Service tax has been raised to 14% from 1st june 2015 onwards. Also there are other abatements also...
Also what are those condition which you have mentioned above???
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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