CA Sandeep Kanoi
In respect of certain services like money changing service, service provided by air travel agent, insurance service and service provided by lottery distributor and selling agent, the service provider has been allowed to pay service tax at an alternative rate subject to the conditions as prescribed under rules 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, 1994. Consequent to the upward revision in Service Tax rate, the said alternative rates shall also be revised proportionately.
2.6.1 Amendments to this effect have been made in the Service Tax Rules which will also come into effect from 1st June, 2015, that is the date with effect from which the increase in the Service Tax rate is made effective. [Notification No. 05/2015-ST 1st March 2015 Entry at Sl. No. 2(a)(e)(ii)] (Notification No.15/2015-Service Tax, dated 19th May, 2015 refers)
| A. Booking of tickets for travel by air by an air travel agent under Rule 6 (7) of Service Tax Rules, 1994 | ||
| New Service Tax Rate wef 1st June 2015 | Old Rate | |
| 1. Domestic Booking | 0.70% of basic fare | 0.60% of basic fare |
| 2. International Booking | 1.4% of basic fare | 1.2%. of basic fare |
| “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airline. | ||
B. Insurer carrying life insurance business under Rule 6(7A)(ii) of Service Tax Rules, 1994 |
||
| New Rate wef 01.06.2015 | Old Rate | |
| 1. 1st year | 3.50% of Premium Charged | 3% of Premium Charged |
| 2. Subsequent Years | 1.75% of Premium Charged | 1.50% of Premium Charged |
C Sale or purchase of Foreign Exchange, including money changing under Rule 6(7B) of Service Tax Rules, 1994 |
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| Gross Amount of Currency Exchanged | New Service Tax Rate wef 1st June 2015 | Old Rate |
| 1. Up to Rs. 1,00,000 | 0.14% of gross amount of currency exchanged(min.Rs.35) | 0.12% of gross amount of currency exchanged(min.Rs.30) |
| 2. 1,00,000-10,00,000 | Rs.140 + 0.07% of gross amount exceeding 1 lakh | Rs.120 + 0.06% of gross amount exceeding 1 lakh |
| 3. exceeding 10,00,000 | Rs.770 + 0.014% of gross amount exceeding 10 lakhs(max. Rs.7000) | Rs.660 + 0.012% of gross amount exceeding 10 lakhs(max. Rs.6000) |
D. Taxable service of promotion, marketing, organising or in any other manner assisting in organising lottery under Rule 6(7C) of Service Tax Rules, 1994 |
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| Guaranteed Prize Payout | New Service Tax Rate wef 1st June 2015 | Old Rate |
| Prize payout More than 80% | Rs. 8,200/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw | Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw |
| Prize payout Less than 80% | Rs. 12,800/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw | Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw |
Author Bio
hello sir, i want to open air ticket booking office as an proprietorship firm. please tell me following things ..
1. service tax rate applicable on air ticket booking
2. on which amount service tax will be levied.
i am working for new travel company wants to understand the process of service tax
i m working in travel company and i want to know new rates and rules 2016-2017 on tour and hotel services and transport by air or rail
hello what new service tax rate on flight tkt after new rate 14.50% and after 1.4.2016 15%
hello, i am working with an travel compny. i want to know that besides service tax @1.4% which tax is applicable to the invoice
Hello Sir, Just wanted to know that bank has levied Govt service tax of Fx conversion but me being an manufacturer can i claim set off ya can i take cenvat credit for the same ?
The rate of 0.7% on domestic bookings by air travel agent is arrived after what abatement or adjustment from 14%. Since service tax rate is fixed 14%.
Dear Sir
could you please tell me on which components the airline will charge the service tax from air travel agents for booking the air tickets?
Air Fare: 5000
Taxes: 500
Fuel: 500
Total: 6000
Sir Wheather provision discuseed about if prize payout ratio is equal to 80%
dear sir i will be purchased RS: 30 x 3500, kerala lottery daily how service tax will be
charged in case
All persons has submitted a post on site after doing it copy paste from different websites.
but there is no one i have seen who has given a complete detail about revision of service tax rate and reverse charge mechanism, Like!!!!!!
what will be the new rate for Manpower Supply?
what will be the new rate for Cab & Taxi operator?
what will be the new rate for GTA?
what will be the new rate for in case of WCT?
If anyone have these details please share in complete detail.
Dear sir
Kindly tell me logic of charging rate of st on foreign currency exchange.
In Money Changing Service
0.14% of tax for up to 100000 there they mentioned minimum Rs 35.
So what is that 35rs.
We have to give minimum 35 as tax or the minimum bill amount would be 35rs.
please clear my doubt.
C Sale or purchase of Foreign Exchange, including
money changing under Rule 6(7B) of Service Tax Rules, 1994
From
0.14% of tax for up to 100000 there they mentioned min Rs 35.
From that Minimum 35rs means tax amount or gross bill amount.
Dear Sir, How service tax will be charged in case of sub agents who are not IATA agents?