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.
CAclubindia
