Service tax of a travel agent bill.

Travel agent (Service provider) will charge the service tax @ of 12.36% on 60% of the bill amount and recipient will pay the service tax @ 12.36 on 40% of the bill amount.

Hi, 

I agree with AK SINGH sir openion, We have also received one bill like Ser.Tax @ 12% of 40% of subtotal value.

Actually if Service Provider not having ST2 registration, then Service Receiver may take 60% abatement and pay ST @ 12.36 on 40% value.

if SP has a ST2 registratant means SP has to charge ST on 60% value, rest of 40% of tax liability to be paid by SR.