20 October 2010
Dear Experts, We are in helicopter chartering business. These days we are operating at kedarnath Temple. we have hired a helicopter for the same. They issued us their invoice including service tax @10.3% but we are charging service tax of Rs. 100/- per ticket to the devotees as per government rueles. Now pls guide me if we should pay this company the total amount including service tax @10.3% or we should pay the amount excluding service tax? Thanks n regards Preeti
21 October 2010
What ST you are charging has nothing todo with the ST charged by the owner of the Helicopter. They are charging you ST on the gross amount as per the rules under the category of supply of tangible goods.Since they keep control and possession of the Asset.
21 October 2010
There are two things. One is the service charged by your service provider in accordance with the provisions of service tax scheme. Perfectly alright. You have to honour their bill including service tax.
Second thing is what is obligatory on your part to discharge output service tax, when you provide services to your customer. You have to discharge the service tax as per the service tax schme. This has nothing to do with your status as service receiver.
CAclubindia
