Alpesh (Others) (58 Points)
28 March 2012Hello Friends,
What is the Service tax to be paid for travel agents? They sell tour packages (i.e. travel arrangement, hotel booking, site seing booking etc.) and earn commission on it. Cost of all the components of tour package individually includes service tax to be paid to the service providers. In this situation how much service tax needs to be charged by travel agent from the customers on the total cost of package.
Please guide me on this
Thanks
Alpesh
Devendra
(Chartered Accountant)
(4775 Points)
Replied 28 March 2012
The Service Tax is charged @ 10.3%. If abatement of 75% is claimed, then the effective rate of Service Tax will be 2.575%.
Note : Cenvat Credit and Abatement cannot be claimed simultaneously.
Regards,
Devendra
Alpesh
(Others)
(58 Points)
Replied 01 April 2012
Thank u so much for your reply,
Like for sales tax we have TIN number, similarly for service tax which number is required? plese advise..
Thanks
ALpesh
Devendra
(Chartered Accountant)
(4775 Points)
Replied 01 April 2012
1) Yes. You will have to register with the Service Tax Department and obtain a Service Tax Registration No.
2) You will have to apply for registration of Service Tax in Form ST - 1.
3) After filing the application for registration you will get the Service Tax Registration in the form ST - 2.
Regards,
Devendra Kulkarni
deepak mandavkar
(accountant)
(21 Points)
Replied 04 April 2012
Alpesh
(Others)
(58 Points)
Replied 04 April 2012
Thank you Mr. Deepak for the valuable information. 
Alpesh
(Others)
(58 Points)
Replied 04 April 2012
Thank you Mr. Devendra for the valuable information.
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