13 May 2013
a co is purchasing air ticket and raising invoice like below. i want to ask whether it is fair or not:
Air Ticket : Rs. 10432 govt. s. tax: Rs. 65 (10432*.618/100) service charge: Rs. 522 Total: 11019
i want to ask that the above company, who is actually a agent , needs to pay ST @ 0.6% on Airticket value OR @ 12.36% on Rs. 522( as this is the service charge which is its income)
13 May 2013
the above method used is correct as company has an OPTION to use this method of composition scheme under rule 6(7) of STR,1999. as per rule tax will be 0.6% of basic fare (ec & shec ) extra - in case of domestic bookings. hence correct. though if they dont want to exercise the option they can pay by other way also
CAclubindia
