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TMI BlogService Tax on services rendered by Mandap Keepers and Air Travel AgentsX X X X Extracts X X X X X X X X Extracts X X X X ..... ection 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 keeper 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 coverage and covers all immovable properties let out for organising social, official or business functions. It includes within its scope places like kalyana mandaps or marriage halls, banquet halls, conference h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urniture, fixtures, lighting fittings, vessels, crockery, cutlery etc. All these charges are includible in the value of taxable service for the levy of service tax. 3.5 Where a mandap keeper also provides catering services, that is supply of food, in addition to the letting out of the mandap and charges the customer for supply of food, an 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% of the total amount billed (vide Notification No. 21/97 - service tax, dated 26th June, 1997) . This mainly happens in the case of hotels, clubs etc. 3.6 Some times it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance amount to the air lines. This fortnightly return could be made the basis for assessment of service tax in respect of air travel agents. 4.3 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 case of domestic tickets and 0.5% of the basic fare in the case of international tickets towards discharge of his service tax liability instead of paying tax at the rate of 5% on the actual commission received from the air lines. ( Notification No. 20/97-S.T. refers). Basic fare is defined as that part of the fare on which commission is payable by the air lines. It is reported that this normally does not include the passenger service fee and the taxes. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r services rendered to a client. 5.2 Rules relating to service tax on other services have already been notified and the trade is advised to go through them. However, for the benefit of the services which are to be covered by the Notifications No. 19/97 to 22/97-ST, dated 26-6-1997, the procedured to be followed for registration, maintenance of documents, filing of returns and the manner in which the service tax is to be paid and which were contained in Chapter V of the Finance Act, 1994 , notified to the trade vide this Commissionerate Trade Notice No. 46-C.E. (Misc 46)/94, dated 7-7-1994 are reproduced along with annexures as amended from time to time and by the Finance Act, 1997. Registration : 5.4 The assessees will apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n receipt of such request, order provisional assessment of tax. In this regard, the provisions of Central Excise Rule 1944 have been made applicable. However, there is no requirement to enter into a bond in respect of service tax. 5.7 The Assessee will file the quarterly return in Form ST-3 as amended vide Notification No. 15/97, dated 25-4-1997 in (Annexure - IV) in triplicate. In respect of provisional assessment, the assessee is required to submit a memorandum in Form ST-3A (Annexure V) showing details of difference between the Service Tax deposited and the service tax actually collected for each month. The assessee shall submit quarterly return along with the copy each of form TR-6 for the months covered in the quarter. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returns etc. to the above address. (2) The trade may please note that (a) Application for registration in Form ST-I received form the assessee shall be acknowledged by an officer of the rank of Superintendent of Central Excise. (b) Certificate of registration in the Form ST-2 will be issued under the name and signature of the Assistant Commissioner. (c) The Service Tax collected during any calendar month by the Assessee under Sub-section (1) of Section 68 of the Finance Act, 1994 shall be paid to the credit of Central Government in Form TR-6 by the 15th of the following month. (d) Any person, responsible for collecting the Service Tax, who fails to collect the Tax in accordance with the provisions of sub-section (I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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