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Air travel agencies

sivashankar (Student CA IPC / IPCC) (55 Points)

23 January 2016

i want Rate of Service Tax and Swachh Bharat Cess on air travel agencies

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10 Replies

jitendra bohra (student) (48 Points)
Replied 24 January 2016

Normally 14% abd .50% on Value of service. If composition scheme is opted- Domestic booking 0.7%, and International booking 1.4% Of basic fare.

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Ravi Kumar Somani (Indirect Taxes Specialization) (3893 Points)
Replied 24 January 2016

As per FAQ on swachh bharat cess issued by CBEC the rate of swachh bharat cess in case of Air travel agent shall be determined as per the below formula:

Service Tax liability [calculated as per sub-rule (7), (7A), (7B) or (7C)] X 0.5/14%

Regards,

Ravi Kumar Somani

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Parbhat Jain (CA) (23 Points)
Replied 26 April 2016

can u explain with example?

If basic fare (domestic) is 100000,

then ST 700

& SB Cess ????

SSG (1936 Points)
Replied 26 April 2016

How the SB Cess in case of Air Travel Agent be filled in ST-3 (B.1.15). If tax rate is 1.40% how much to be filled in SB Cess column. Please guide.

CA Ruchika Jain (CA) (54 Points)
Replied 27 April 2016

Ya please help on this query..

As when I take rate as 1.4 as service tax & 0.05 SBC. Then it says that these rates are invalid.

And when I took rate as 1.45 as service tax then also it showed the below error.

Please help.

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Parbhat Jain (CA) (23 Points)
Replied 27 April 2016

Rate will be

Service tax 1.4% & SBCess 0.5%.

means no any relaxation in swatch bharat cess.

CA Ruchika Jain (CA) (54 Points)
Replied 27 April 2016

As far as I know.. Abatement is available on SBC also..

SSG (1936 Points)
Replied 27 April 2016

I received the below reply from aces:-

Dear Sir/Madam,

Since, the service is liable for tax on alternate advalorem rates the SBC rate may be entered as 0.5% for the period applicable. The SBC payable is calculated by the system at B1.22 / B2.22. This payable calculated by the systems can be modified by the user, if required.

Thanks & Regards

Hemanth Kumar Bafna

Pooja Mordani (Chartered Accountant) (45 Points)
Replied 04 May 2016

I received the same reply but the X M L generated after editing the payable sheet shows an error. What is to be done in this case ?

SSG (1936 Points)
Replied 05 May 2016

The department doesn't have any satisfactory reply to this. When I again emailed to ACES regarding XML generation with errors, they advised me to contact the local office. The local officials doesn't have the anwer themself. They are asking to mail the ACES.