Tour operator abetment

Queries 580 views 4 replies

Raj

B.Com

24 Points Joined March 2013

We have a client who is travel agent, he buy holiday packages from a consolidator and on gross amount he pays 3.09% service tax. On selling the above holiday package by adding his service charge/ markup he charges 3.09% on total amount.

For E.g.

purchase is RS 1000 + 3.09% service Tax = Rs 1030.90

Sale is Rs 1200+3.09 % service Tax = Rs 1237.08

So the service tax paid to supplier is 30.90 and collected is 37.09, so should he deposit service tax ,the differance or the total amount collected.

Please advise.

Replies (4)

DOLIKA

article

22 Points Joined January 2011

You have to pay full on output no input credit available

Ankit Agarwalla

281 Points Joined December 2007

Dolika would you pls explain why credit won't be available as going by the input service definiton credit for any service used by service provider for providing output service is available. So, i think Raj can take credit for the service tax that his client pays on input service.

Am relying on - https://www.dateyvs.com/service-tax/cenvat-credit-and-service-tax/cenvat-credit-on-input-services-and-goods/

DOLIKA

article

22 Points Joined January 2011

It is clearely written in the exemption notification no 26/2012 that you take abatement only if condition satisfy that you have not taken any ccr credit to pay such taxes as per ccr rules 2004