Service tax on bus travel agents

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2013 URGENT REQUIRED

Can anyone tell me that whether service tax will be levied is a bus travel agent give bus to another travel agent on contract basis for providing ultimate service to a customer?

IF YES THEN SECTION OR NOTIFICATION UNDER WHICH IT IS WRITTEN

RPLY AS SOON AS POSSIBLE

THANKS

CA Vikas Acharya

CA Vikas Acharya (Expert)
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04 May 2013 cbec clarification:

7.11.5 Is giving of a bus on hire to any person liable to tax?
Giving on hire a bus to a state transport undertaking is exempt from service tax. If the bus is
given on hire to a person other than a state transport undertaking, it will be taxed.

u can find it in service tax education guide, issued by cbec.

type this on google - service tax education guide
u will find the pdf file, search for - 7.11.5

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2013 actually both the entities are providing same service of tour operator and both are availing benefit of 60% abatement...and as such both cannot avail CCR....so at this question if a tour operator lets say (A) give bus to another tour operator (B) on contract of 3 days for Rs. 10000. if A will charge service tax of Rs. 1236 to B, then B will not be able to claim CCR of 1236 as he is availing abatement.
and also if B charge to his customer say 10000(his profit)+10000(A charges charged)=20000. he will charge S.T. of 2472.
there will be a double taxation of service charges of A of Rs. 10000.....

As it is a case of a big company i want to confirm about it whether same line of business will be liable to pay service tax.?
it is written in education guide at 7.11.5 "ANY PERSON" is this include service provider of the same business also.

thanks
reply as soon as possible

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 June 2013 Any income from hiring by bus is liable for Service Tax. If the bus owner's gross receipt is below 10 L then he is not covered but the tour operator is bound to charge ST from the customer and pay it accordingly.