26 October 2010
Dear All, in case of a tour operator who is purchase tour from the other and sale to another person, then how service tax will be charged on such person? can he get credit from the service tax paid by such tour provided?
Ex. A is a person in a city who purchase tour from the another tour operator person B in pakage system. B is charged service tax in his bill @2.58%.In case of tour billed by A to another consumer then how he can charged Service Tax? and He is taken credit from the earlier service tax chrged by B.
its very simple. for example you are A who taken tour service from B. Now B will be charging service tax in their bill as 2.58%. At the same time for tour operator will get abatement 60% only not 75%. so tour operator should charge service tax 2.5754.12%. Now as per their bill, you add your margin and make service tax on them. this is as per my knowledge. let us wait some more answers.