What is the criteria for taking 40% credit of service tax and under which rule?
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 18 July 2009
section 93 of the Finance Act, 1994, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by a tour operator from so much of the service tax leviable on such operator, as is in excess of the amount of service tax calculated on 40%. Of the gross amount charged from any person by such operator for the services provided in relation to a tour, where the tour operator provides a package tour to any person and the bill issued for this purpose indicates that it is inclusive of charges for such a tour.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 July 2009
All credits are under the cenvat credit rules. There is no rule for 40% credit. Credit can be availed for ST charged and if that happnes tobe on 40% so be it.
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(without recording)
CAclubindia
