GANESH KUMAR KASHYAP (Private Job) (206 Points)
16 July 2015Dear Sir/Madam,
WE PAID AS ADVANCE OF RS. 3 LAC TO ABC COMPANY FOR FLIGHT BOOKING, AFTER THEY SUBMIT A BILL (457996-ADVANCE 300000=157996*12.36=177524), SO MY QUESTION IS, IS THIS CORRECT THAT THEY CHARGE A SERVICE TAX ON BALANCE AMOUNT OF RS. 157996, IF THIS IS CORRECT, WHY?
&
WHAT IS THE CORRECT CALCULATION OF SERVICE TAX, IF WE PAID AS ADVNACE OF RS. 300000 AGAINST FLIGHT BOOKING.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 18 July 2015
It is totally incorrect. There are special rates of ST for flt.
CA Dhrunal Mehta
(Partner)
(41 Points)
Replied 22 July 2015
Service Tax has to be levied only on part of commission charges charged by the commission agent. In normal cases booking agent do not charge the commission from client but directly from the airlines whose ticket has been booked. In this case invoice of booking agent do not display service charges. In such cases service tax will be levied at below mentioned percentage:
In domestic booking @ 0.70 % of basic fare and in international booking @ 1.40 % of basic fare.
JAGANATHAN R ACMA, SAP(Fi-Co)
(Manager Accounts and Finance)
(915 Points)
Replied 31 July 2015
calculate the Invoice value
Live class on PF & ESI Enrollment & Returns Filing(with recording)
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