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Help me please

Nisha Yadav (Accounts exe) (455 Points)

15 April 2014

Dear All,

we are air travel agent and charged service tax @ .62% & 1.24 % .

now i need to file service tax return. so while i m filling retun faced follwoing problem.

1)What is gross amount in case of air travel ( only commission on which charged st or amount which collected from customer)

2)how to calculate taxable unit and what is specific rate.

Please help me..

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5 Replies

DINESH (VKC) (41 Points)
Replied 15 April 2014

AS PER RULE 6(7) OF THE SERVICE TAX, 0.62% (IN CASE OF DOMESTIC BOOKINGS),1.24%(IN CASE OF INTERNATIONAL BOOKINGS) ON BASIC FARE IS THE SERVICE TAX PAYABLE.

The term ‘basic fare’, defined for the purpose of this rule as that part of the air fare on which commission was payable to the agent by the airline.

HENCE THE RATES TO BE APPLIED ON THE AMOUNT ON WHICH COMMISSION IS CALCULATED

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Nisha Yadav (Accounts exe) (455 Points)
Replied 15 April 2014

Thanks, but how to file data in service tax return.. What is specific rate and how to calculate taxable unit

Abhishek (Chartered Accountant) (142 Points)
Replied 16 April 2014

since you are charging service tax on basic fare, taxable rate shall be 0.62% (IN CASE OF DOMESTIC BOOKINGS),1.24%(IN CASE OF INTERNATIONAL BOOKINGS).... general rate of 12.36% shall not apply here...