Turnover on service tax

Internal Audit 218 views 5 replies

Abhishek Sengupta

Others

38 Points Joined April 2013

Hello, I am travel agent. We charge Service tax based in abatements. For example 4.5% for packages, 1.5% on hotel booking like this. We have raised invoice worth apporx 20 lakhs (Exclusive of taxes) in the last financial year. However our turnover based on service tax returns comes a lot less. Is it correct in our field ? Will 20 lakhs be taken as trunover or based on service tax turnwover will be taken as final. Turnover based on service tax coming quite less as we do not charge full service tax, we charge it based on abatement.

Please advice...

Replies (5)

CA Rohit Jain

Practice

1865 Points Joined August 2012

It is bound to come less

Abhishek Sengupta

Others

38 Points Joined April 2013

Dear Mr Jain Thanks a lot ! Also just wanted to know this process(Turnover based on ST) is applicable for companies availing abatement (wherein we charge low percentage of ST) ... Or is there any other way for calculating turnover in our case. Abhishek

CA Harshal Totla

Chartered Accountant

2229 Points Joined May 2014

Yes Mr.Abhishek, companies can also avail abatement.

Raghuvamsi Kurapati

Article Assistant

21 Points Joined June 2016

While filing ST returns you have to provide gross Service charges i.e, with out abatemnent, later youy will get the option of abtement, there you can mention the abatement amount & ST will be calculated on such amount after taking abatement.As you have collected ST on amount after taking abatement same might be deposited with the dept, so there wont be any issue in showing gross amount of service charges