I would like to know if the revision in rate of service tax by way of reduction of 2% applies only to cases where service tax of 12.36% is levied or there is some relaxation in other cases where rate of service tax is different like incase of airline ticketing business, foreign exchange business etc. views solicited thanks
3 Replies
Sanjay Mukhopadhyay
(CA Job)
(16 Points)
Replied 03 March 2009
In case of air travel agent for domestic booking theservice tax rate erstwhile was 0.618% and for international booking it was 1.236% .Now in the light of the revision from 12.36% to 10.3% what rate needs be charged.Also for GTA should it be proportionately charged as 12.36% for prior to 24.02.09 and 10.30% after 24.02.09.
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 03 March 2009
There are various notification which gives abatement in value- the benefit of reduced rate is available on those service. When the notification reduces the rate itself (i.e. 4% in case of composition scheme in work contract), no benefit is available.
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