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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 ..... n 88 of the Finance Act, 1997 which provides interalia 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aphs. 2.4 The person responsible for collecting the service tax will 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 caterin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r tickets. 3.2 It is understood that the air travel agents receive certain 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No. 20/97-Service Tax, dated 26.6.97 amends rule 2 of the said rules so as 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Central Excise authorities. b). Payment of Service Tax The Service tax collected during any calender 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terly Return If a person fails to furnish the Quarterly Return (including "Nil" return) in Form ST-3 in time.i.e. by 15th July, 15th October, 15th January 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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