Cenvat credit - Travelling agent services

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..... Cenvat credit - Travelling agent services
Query (Issue) Started By: - Vijay Chitte Dated:- 15-12-2006 Last Reply Date:- 15-12-2006 Service Tax
Got 1 Reply
Service Tax
"A" (Travel agent) a .....

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..... vailed service from "B" (Other travel agency)for providing service to his client "C". "B" (other travel agency)raised the bill to "A" for Rs.10490/- [10000 + 490 (S.T. 4.9%)]. "B" paid this bill in ti .....

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..... me. Now "A" raise the said bill to "C" including his profit margine Rs.1000 e.i Rs.11000 (10000+ +1000). My question is: Can "B" charge the service tax @4.9%(After taking abatment)OR @12.24%? If, he c .....

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..... an charge the service tax @4.9%, Can he take the CENVAT credit which aviled from "B"? Reply By Surender Gupta: The Reply: In the notification no. 1/2006 it clearly prohibited to avail the two benefi .....

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..... ts simultaneously. You have to choose either to avail the exemption (abatement) or to pay full service tax. If you want to pay at concessional rate, cenvat credit is not available.
Discussion Foru .....

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..... m - Knowledge Sharing .....

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