08 November 2013
Kindly advise me how to deal with below detail issue with respect to service tax.
one of my relative is running his own tour travel agency i.e. basically he is providing services mainly for tour travel packing both domestic as well as international packages, trail ticket booking (very few) and air travel ticket (very few). now he wanted to avail service tax number for his proprietorship firm. my queries are:
1. do he need to mention all services in ST1 form. like at service tax site there are separate service tax head for air travel agent, rail agent and tour operator etc. How he will come know that under which service head all his service will fall. Mentioning Tour Operator is coverage of all his services ?
2. He is availing these package in bluk from big companies like makemytrip etc. and further offers it to customer. they ae charging them service tax @ 3.09%. how it is possible. How & from where this rate of 3.9% s arrived whereas in most of services ae liable for tax @ 12.36%.
3. What is funda behind abetment of service tax. One service tax credit i know that a person calim when he take service from some one else and charge service tax from his own customer s paid service tax is adjustemnet through service tax credit.
kindly guide me as i m too much confuse how t select service or mention all service and rate of service tax...
There are certain services like tour operators, GTA, Rent a Cab, Hoteliers, etc which are notified for some percentage of abatement by the service tax department. For such services Service Tax rate will be calculated after deducting the percentage of abatement.
CAclubindia
