SERVICE TAX LIABILITY

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..... SERVICE TAX LIABILITY
Query (Issue) Started By: - DEEPAK GUPTA Dated:- 6-3-2013 Last Reply Date:- 18-11-2015 Service Tax
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Service Tax
Respected Sir, We are engaged in business of Air Travel Agents and are regd. under Service Tax as such. We are IATA accredited agents and normally sell air tickets on our stock. We also procure some tickets from other IATA agents and sel .....

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..... l further to sub agents. Our business involvcs following transactions :- 1) SALES ON OUR OWN STOCK :- a) We are presently paying service tax @ 12.36% on commission received from BSP on fortnightly basis. We have been advised that we should pay @ 12.36/112.36*BSP Commission . Kindly confirm if this version is correct. b) We receive PLB commission from Airlines on achieving yearly targets. We .....

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..... are properly paying Service tax @ 12.36/112.36 on receipt of PLB. c) We also receive some CRS commission from service providers like Galileo whose software, we are using. We are not providing any service to them. No tax is presently being paid.on this commission. 2) SALES ON TRADING BASIS :- We outsource tickets for some business from other IATA agents. These agents charge service tax in thei .....

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..... r invoices. A specimen of such invoice is as follows IATA BSP AGENT BILLING TO MY COMPANY Supose Basic fare &Taxes 10000 Less Std. Commn+PLB/Dis. (-) 1000 9000 Service Tax 124 (12.36% On Rs. 1000/-) Net amount I have to pay to 9124 IATA BSP Outsource Agent We make a small profit of say Rs. 300/- on this purchase and issue the following invoice to our to our sub agent/Agent. .....

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..... SAME INVOICE FROM MY COMPANY TO OTHER CO./Sub Agent Suppose Basic fare &Taxes 10000 Less Std. Commn+PLB/Dis. (-) 700 9300 Service Tax 87 (12.36% On Rs. 700/-) Net amount I have to Receive 9387 From Sub Agent/customer We have neither taken any credit of Rs. 124/- paid on purchase nor paid the amount of Rs. 87/- charged to the buyer. a) Kindly let us know the legal position on .....

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..... each type of transaction. b) Whether we can issue SEVICE TAX PAID BILLING ----- or is it mandatory to show SERVICE TAX on invoices. Thanks & regards, Jatinder Sharma Reply By MARIAPPAN GOVINDARAJAN: The Reply: Whether you have got clarified? If not please inform.
Discussion Forum - Knowledge Sharing .....

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