TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal exempts service tax on parking, service charges, and commission for Rent-a-Cab and Air Travel Agency Services.</h1> The Tribunal set aside the demand for service tax on parking charges, service charges, and commission collected in relation to Rent-a-Cab and Air Travel ... Demand of service tax - Rent a Cab Services - Air Travel Agency Services - Parking charges which their travel desk had collected from customers who were provided with Rent-a-Cab Services - Service charges which they received from their travel division (IATA agent) for booking air tickets for clients staying at the hotel - Commission received from the travel division for booking air tickets on behalf of the service provider - Held that:- The travel division undertakes the booking of air tickets. The travel division raises invoice charging service tax on the basic fare which is forwarded to the travel desk. The bills raised at the travel desk includes the value of inter-division services alongwith service tax and service charges. Since service tax on the basic fare is being discharged by the travel division of the appellant company under Air Travel Agency Services, the demand on the appellant treating these two divisions as separate entities is incorrect - demand do not sustain. Parking charges - Held that:- This is in the nature of reimbursable expenses and therefore cannot be subject to levy of service tax - the demand cannot sustain. Appeal allowed - decided in favor of appellant. Issues:Demand of service tax under 'Rent a Cab Services' and 'Air Travel Agency Services' based on parking charges, service charges, and commission collected by the appellant.Analysis:The appellants were issued a Show Cause Notice for not paying service tax on parking charges, service charges, and commission collected in relation to Rent-a-Cab and Air Travel Agency Services. The original authority confirmed the demand, interest, and penalties, which was upheld by the Commissioner (Appeals), leading to the current appeal.The appellant argued that there is no sister concern, but a separate division of the company providing services. They explained the relationship between the travel desk and the travel division, stating that no separate service tax is liable under Air Travel Agency Services as the travel division pays service tax on air tickets. Regarding parking charges, they contended that as these are reimbursable expenses, no service tax should be paid. They relied on a decision of the Honorable Apex Court to support their arguments.The Ld.AR reiterated the findings of the impugned order, but the appellant's representative clarified that the transaction of booking air tickets at the travel desk does not constitute air travel agency services. The invoices raised by the travel division included inter-division services, service tax, and service charges. The Tribunal examined sample invoices and concluded that the demand for service tax was unfounded and set it aside.Regarding parking services, it was established that the appellant collects parking charges while providing Rent-a-Cab Services, which are reimbursable expenses. Following a precedent, the Tribunal held that such charges are not subject to service tax and set aside the demand.Consequently, the impugned order was set aside, and the appeal was allowed with any consequential reliefs.
TaxTMI 
TaxTMI 
