Air travel agents - st3
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 October 2013
Can anybody help in filling ST-3 for air travel agents, for domestic and international ticketing at 0.6% and 1.2%...? These are specific rates under Rule 6(7), and not after any abatement...so how to fill it in the form ST-3 ?
23 October 2013
There is only one rate levied under Finance Act 1994 and that is 12.36%. All other rates arise either because of exemptions or abatement. In the case of air travel agencies, the rate has been fixed keeping in view the rate of commission that was being paid to IATA agents by various airlines and it was determined at 6% and 12% respectively and the percentage was computed accordingly, since most air travel agencies do not have separate records of the commission paid by the airlines. The tickets are sold at Rs.X inclusive of all incentives receivable by the agent. Hence this fixed percentage.
Now with the rate @ 0.6% and 1.2% respectively, a separate working sheet should be prepared. An Excel Worksheet monthwise / quarterly (depending on the assessees status) enumerating each invoice with these particulars: Bill No.-Bill(net of tax)Amount-Deductions-Commission-Service Tax. Fill up the amount ccolumn and then directly calculate the service tax @0.6% and 1.2% as applicable on the relevant invoice. In the commission column divide the service tax column by 12.36%. The difference between amount column and commission column is the deduction column.
Once this working sheet is ready in the ST-3 Return fill B1.1 Gross Amount with the Invoice amount net of Service Tax. Fill B1.12 "Any other amount claimed as deduction - Airline cost" with the deduction amount. B1.14 will automatically give the NET TAXABLE VALUE. Now fill up the Columns of B1.15 12-2-1 and the figures of B1.14 and your return is ready. All other details are routine and the return can be filled up and uploaded.
Now with the rate @ 0.6% and 1.2% respectively, a separate working sheet should be prepared. An Excel Worksheet monthwise / quarterly (depending on the assessees status) enumerating each invoice with these particulars: Bill No.-Bill(net of tax)Amount-Deductions-Commission-Service Tax. Fill up the amount ccolumn and then directly calculate the service tax @0.6% and 1.2% as applicable on the relevant invoice. In the commission column divide the service tax column by 12.36%. The difference between amount column and commission column is the deduction column.
Once this working sheet is ready in the ST-3 Return fill B1.1 Gross Amount with the Invoice amount net of Service Tax. Fill B1.12 "Any other amount claimed as deduction - Airline cost" with the deduction amount. B1.14 will automatically give the NET TAXABLE VALUE. Now fill up the Columns of B1.15 12-2-1 and the figures of B1.14 and your return is ready. All other details are routine and the return can be filled up and uploaded.
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 October 2013
Thank you for the reply.
However the method you stated, implies we are taking abatement....like first calculating tax @ 0.6% and 1.2% and then making reverse computation to arrive at 12.36% as service tax. Which cannot be done in this case, as this service is not specified in notification 26/2012 of abatement.
My query is, as ST-3 does not accept any rate other than 12%, then what is the way out to file return for specific rates, where there is no abatement can be claimed.
Please note once again, for Air Travel Agents, no abatement is applicable, though above mentioned rates are specified under Rule 6(7) of ST Rules, 1994.
However the method you stated, implies we are taking abatement....like first calculating tax @ 0.6% and 1.2% and then making reverse computation to arrive at 12.36% as service tax. Which cannot be done in this case, as this service is not specified in notification 26/2012 of abatement.
My query is, as ST-3 does not accept any rate other than 12%, then what is the way out to file return for specific rates, where there is no abatement can be claimed.
Please note once again, for Air Travel Agents, no abatement is applicable, though above mentioned rates are specified under Rule 6(7) of ST Rules, 1994.
23 October 2013
Please refer to the last paragraph of my earlier opinion. I have clearly stated that you have to arrive at Net Taxable Value of which the tax rate @12.36% equals your ST payable @0.6% or 1.2%.
Further I have asked you to claim the difference as deduction under item B 1.12 "ANY OTHER AMOUNT CLAIMED AS DEDUCTION". This deduction is in addition to other exemptions, abatements like Export of Services B 1.8, exempted Service B 1.9, amount charged as pure agent B 1.10 and abatement claimed B 1.11. B 1.12 also asks specifications and you can put the explanation u/r 6(7) of the ST Rules,1994.
Unfortunately, it is not open for us to put adhoc rates of tax or figures in the rate column. Since the software is so programmed, one has to arrive at the NET TAXABLE VALUE - 12.36% of which will equal the service tax deducted at the lower rates.
I hope I have been able to clear your doubts in this matter.
Further I have asked you to claim the difference as deduction under item B 1.12 "ANY OTHER AMOUNT CLAIMED AS DEDUCTION". This deduction is in addition to other exemptions, abatements like Export of Services B 1.8, exempted Service B 1.9, amount charged as pure agent B 1.10 and abatement claimed B 1.11. B 1.12 also asks specifications and you can put the explanation u/r 6(7) of the ST Rules,1994.
Unfortunately, it is not open for us to put adhoc rates of tax or figures in the rate column. Since the software is so programmed, one has to arrive at the NET TAXABLE VALUE - 12.36% of which will equal the service tax deducted at the lower rates.
I hope I have been able to clear your doubts in this matter.
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 October 2013
My this query is solved.
The answer is once I put Air Travel Agent services, it will accept 0.6% and 1.2% also as a service tax rate, because these are specific rates. Hence we need not add anything difference, to get tax figure at 12.36%.
Hence under air travel agent services, we have option to put 0.6 and 1.2 as service tax rate.
My this query is solved.
The answer is once I put Air Travel Agent services, it will accept 0.6% and 1.2% also as a service tax rate, because these are specific rates. Hence we need not add anything difference, to get tax figure at 12.36%.
Hence under air travel agent services, we have option to put 0.6 and 1.2 as service tax rate.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Refund of AY 22-23
- Inventory of finished goods
- TDR receipts for agreement holder
- Sale of property furniture sale
- Disallowance of Section 43B(h) to sez units
- Filing of Form 10BB instead of Filing Form 10B
- Applicability of Ind As to associate of associate
- Intimation wrongly states taxpayer has offerred u/s. 44ad & states probable resolutiton to do audit
- Refund AY 2012-13 and 2013-14
- DIRECT TAX CODE 2025
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
