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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 ..... lia for levy of service tax on services rendered by Mandap these services will come into force from 1.7.97 (Notification No. 19/97-Service Tax dt. 26.6.97 referred) Notification 20/97-Service Tax dated 26.6.97 has been issued to define the person responsible for collecting the Service Tax in relation to Air 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be "mandap keeper". The service tax would fall not only on the hire charges for the mandap but also charges for electricity, whether on actual basis or otherwise, charged to the customer. therefore, it may be ensured that the tax is collected on the whole amount even if separate bills are issued 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n commission for domestic tickets and for international tickets from the airlines. The details of the commissions payable by the air lines is indicated in the agency agreement entered into between the air line and the air travel agent. the travel agent files a fortnightly return to the airlines 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prescribe that the person responsible for collecting the service tax in relation to the services provided by an air travel agent shall be the air travel agent who books the passage for travel by air for a customer and the person responsible for collecting the service tax in relation 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 Governmnet account by the 15th of the succeeding month. Section 68(3) of the Finace Act, 1994 as amended, provides that a person responsible for collecting the service tax who fails to collect such tax shall be l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lender month shall be paid to the credit of the Central Government by 15th or the following month in form TR-6 challan (yellow colour). For e.g. for the month of June 1997, it should be credited latest by 15th of July 1997. The head of account for 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 cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry and 15th April for the quarters ending June, September, December and March respectively, he shall be penalized a sum of Rs. 100/- extendable to Rs. 200/- for every day during which the failure continues. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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