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Prateek Dua (CA FINAL) (75 Points)

02 February 2013

Hello Everyone,

My frnd is running a bizz of travel agency n have asked few things for which m not sure so need ur help urgently on following doubts:

1. he started his travel agency as sole prop bizz in april 2012 and ve not registered for service tax no. so do he require to take service tax no compulsorily for such bizz???

2. if not den when is he required to take service tax no compulsorily???

3. as ve know if service income reached till rs 9L in FY den assessee ve to apply for service tax no n if crossed Rs 10L den ve to charge from the clients ----- here question is wat do v understand by service income????

Is it commission dat v earn or amount of transactions been done in particular account (whether savings or current)???????

PLEASE HELP ASAP

Thanks n Regards

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6 Replies

Urvashi Saini (Difference between Peak Performers & everyone else is what "everyone else" thinks) (1494 Points)
Replied 02 February 2013

My dad has travel business.. He have current account ..
Next he is not right now register with service tax no.
as the turnover of busiess is not crossing the limit of 9 lac.
Next he have PAN no. through which companies or offices
who hire cabs cut the TDS..!
He regularly files return also with the help of CA.

1 Like

Prateek Dua (CA FINAL) (75 Points)
Replied 03 February 2013

@ Urvashi

Hi, thanx for replying dear but i wanna know wat do you understand by turnover in terms of travel biz. Service Income he is earning or total receipts he.s getting into his bank accounts????

Urvashi Saini (Difference between Peak Performers & everyone else is what "everyone else" thinks) (1494 Points)
Replied 03 February 2013

Total receipts shown by bank statements...and other books if the agent maintains...

1 Like

V.Rajalakshmi (proprietrix) (65 Points)
Replied 05 February 2013

Dear Pradeek dua

The turnover for the purpose service tax is total taxable turnover and exempted turnover need not be added for the purpose of arriving at Rs 9 lakh. In my opinion total receipt from travel business exceeds Rs 9 lakh registartion under service tax is mandatory and service tax needs to be collected after t/o crossing Rs 10 lakh subject to availing abatement. The following services provided by a travel agent is exempt from service tax and all others are taxable

Exempted services.- mega notification

22. Services by way of giving on hire -

(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve

passengers; or

(b) to a goods transport agency, a means of transportation of goods;

23. Transport of passengers, with or without accompanied belongings, by -

(a) air, embarking from or terminating in an airport located in the state of Arunachal

Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura

or at Bagdogra located in West Bengal;

(b) a contract carriage for the transportation of passengers, excluding tourism,

conducted tour, charter or hire; or

1 Like

Prateek Dua (CA FINAL) (75 Points)
Replied 08 February 2013

sorry guys but m still not been able to figure out the term turnover????

for example - - assessee had booked an air ticket for Mr A for rs 50000 n Mr A has tsfd d said amount into assessee's current account but assessee has earned only rs 500 in dis ticket den which amount will be calculated for registration of service tax??? Rs 50000 which includes cost plus income or Rs 500 i.e. only income?????

Prateek Dua (CA FINAL) (75 Points)
Replied 08 February 2013

one more ques regarding same prob - -

Client has tsfd an amount of Rs 20L in assessee's current account for purchasing of foreign exchange. Assessee purchased d FOREX for the said amount n gave to client. Assessee dint took any commission or earned any income out of such transaction as client was his family member. Does this amount will be included for calculating the amount for ST registration??? assessee does not deal wid FOREX, he took money from bank purchased FOREX for client n gave dem.