Service tax on travel agent & car hiring

This query is : Resolved

YOGRAJ R. JADEJA (Querist)
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10 July 2013 HI ALL

ONE OF MY FRIEND IS TRAVEL AGENT. HE OWNING 4 CARS.

RECENTLY HE HAS TAKEN SERVICE TAX NUMBER

I WANT TO KNOW THE RATES CHARGE WHILE HIRING CAR FROM MARKET & RATES WHILE USING OWN CARS IN MARKET.

I HEARED THAT THERE WAS 60% ABATEMENT ON GROSS BILL. KINDLY EXPLAIN EXACT RULE BRIEFLY

THANKS

CA Anurag Nema

CA Anurag Nema (Expert)
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10 July 2013 The percentage of service tax will be 40% on gross billed amount after abatement @60%. This abatement is optional and if it is taken, no CENVAT Credit will be available.

YOGRAJ R. JADEJA

YOGRAJ R. JADEJA (Querist)
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11 July 2013 thanks Mr. Anuragji

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