Turnover on service tax

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)

It is bound to come less

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
Yes Mr.Abhishek, companies can also avail abatement.

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

nice

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