TaxTMI 
TaxTMI 
TOUR OPERATOR SERVICE
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....OUR OPERATOR SERVICE<br> Query (Issue) Started By: - Kunal Aggarwal Dated:- 7-1-2017 Last Reply Date:- 7-1-2017 Service Tax<br>Got 3 Replies<br>Service Tax<br>Hi, A tour reseller is selling tour package after adding markup. Tour seller is charging 4.35% Service tax on tour and after that Tour reseller add markup and sold it to customer. what should be the sevice tax applicablity on that on point ....
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....of Tour Reseller. He has to pay service tax on markup only or full invoice amount. Reply By KASTURI SETHI: The Reply: As per Section 67(3) of the Finance Act, 1994, gross amount charged is to be considered for payment of ST. See the definition of 'consideration' and 'Gross Amount Charged' under Section 67. The admissible abatement is to be deducted from the gross amount while ar....
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....riving at taxable value. Relevant extract of Section 67 "(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation. - For the purposes of th....
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....is section, - (a) ["consideration" includes - (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed; (iii) any amount retained....
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.... by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket.'.] [(b)  *  *  *  * ] (c) "gross amount cha....
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....rged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and [book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any ....
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....associated enterprise.]] Reply By Ganeshan Kalyani: The Reply: The tour reseller will be able to take credit of the service tax charges by tour seller. Reply By KASTURI SETHI: The Reply: I agree with Sh.Ganeshan Kalyani, sir.<br> Discussion Forum - Knowledge Sharing ....