Service tax
Querist :
Anonymous
(Querist) 06 January 2010
This query is : Resolved
Hi.
one of my client has a business of
1. air travel booking. but he booked ticket from other travel agent and get commission. and
2. he manages tours in India means he booked hotels for client and arrange for car and add his margin and issue bill to client.
my query is whether he is liable to service tax? what is the limit? and how the same is calculated.
pls mail the reply to ca.mananshah@yahoo.com
Thanks and regards.
Raj Kumar Makkad
(Expert) 06 January 2010
Definitely your client is providing the service to his customers in the way you elaborated in the quarry hence is liable to pay service tax at the prevalent rates.
Querist :
Anonymous
(Querist) 07 January 2010
Thanks for reply...
But sir, in which category he may fall? and what is the criterion to decide the limit of rs 10 lacs? whether his gross turnover or his commission to be seen for deciding the limit? He falls under audit.