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TMI BlogImposition of service tax on services rendered by Mandap keeper and by an Air Travel Agents reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... r Travel Agents and Mandap keepers. 2. MANDAP KEEPERS In the context of these two services, certain points have been raised for clarification which are discussed below: 2.1 As per clause (19) of Section 65 of the Finance Act, 1994, "Mandap" means any immovable property as defined in Section 3 of the Transfer of Property Act, 1882 and includes any furniture, fixtures, light fittings and floor coverings therein, let out for consideration for organising any official, social or business function. "Mandap Keepers" has been defined as " a person who allows temporary occupation of a mandap for consideration for organising any official, social or business function". It may kindly be noted that the definition of mandap is very wide in its co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one for the rental and the other for electricity charges. The mandap keeper may also bill the client for other services rendered by him such as charges for providing furniture, fixtures, lighting fittings, vessels, crockery, cutlery, etc. all these charges are includible in the value of taxable service for the levy of service tax. 2.5 Where a mandap keeper also provides catering services, that in supply of food, in addition to the letting out of the mandap and charges the customer for supply of food, and abatement of 40% of the total amount charged has been provided while computing the value of the taxable service. This will be deemed to be the value of taxable service in such cases. In other words, service tax will be leviable on 60% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlines indicating the details of tickets booked, the fare collected the commission earned along with other particulars. After the commission earned along with other particulars. After adjusting the commission, he remits the balance amount to the air lines. This fortnightly return could be made the basis for assessment of service tax in respect of air travel agents. 3.3 However, an option is also being provided to the air travel agent to pay the service tax at the rate of 0.25% of the basic fare in the acse of domestic tickets and 0.5% of the basic fare in the case of international tickets towards discharge of his service tax liablity instead of paying the tax @ 5% on the actual commission received from the air lines. (Notification No. 20/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the services provided by a mandap keeper shall be the mandap keeper who raises the bill for services rendered to a client. 4.2 Section 67(2) of the Finance Act, 1997 provides that the service tax collected during a month shall be deposited to the Government account by the 15th of the succeeding month. Section 68(3) of the Finance Act, 1994 as amended, provides that a person responsible for collecting the service tax who fails to collect such tax shall be liable to pay the service tax to the Government within 75 days from the close of the month in which their service was rendered. Section 76 further provides that in case of failure to pay the tax within the period of 75 days, the person responsible for collecting the service tax sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the above two services will be intimated shortly. The amount of Service Tax be paid into the U.B.I. The list of authorised branches with Code Nos. is enclosed. Any person responsible for collecting the service tax who fails to collect the tax shall. notwithstanding such failure, be liable to pay such tax to the credit of the Central Govt. Within 75 days from the end of the month in which the service was rendered. c). Interest on Delayed Payment of Service Tax If any person fails to pay or credit the Service Tax or any part thereof in time, he shall pay simple interest @ 1.5% for every month or part of a month in which such payment/crediting of the tax or any part thereof is delayed. d). Filing of Quarterly Retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . g). Penalty for suppressing value of taxable service If any person is found concealing or suppressing the value of taxable service or has furnished inaccurate value, etc., such person shall be penalised a sum upto twice the amount of service tax sought to be evaded by reasons of suppression, concealment, etc. besides paying the actual service tax and interest, if any. Apart from the above penalties, persons committing offences under Chapter V of the Finance Act, 1994 would also be liable to prosecution in certain cases. h). Records Every assessee shall furnish to the Central Excise Officer at the time of filing his quarterly return for the first time a list of all accounts maintained by the assessee in relation to service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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