02 July 2009
A company say x ltd. is registered with IATA,providing air travel services to its customer but some time company purchases ticket from other agent. At the time of selling the company genrally increase the basic fare of the ticket, Now the question is while selling the ticket, at what amount the company will charge the service tax and how much it will pay to the government
illustation Rs Lets basic fare was 10000 Service tax charged by the vendor 124 Cost to the x ltd 10124 lets basic fare increased by 2000 the company Now how much service tax should be charged by the X Ltd. while selling the ticket and how it should pay to the government
02 July 2009
Service Tax to be charged on Rs.12000/- at 10.3% which amounts to Rs.1236/-. Amount Payable to the Government will be Rs.1112/- taking input credit of Rs.124/-.
CAclubindia
