Please Help: Service Tax and TDS
Posted Date : 09-Jan-2012 , 03:47:12 pm | Posted By CA Rahul Prashar
whether service tax credit will be available on tickets booked by travel agent for e.g jupitor travel solutions and tds will be deducted on payment made to the travel agent.
Category : Service Tax | Answers : 1 | Comments : 1 | Hits : 631
Answers
Answer By: Ashish Karundia
Dear Rahul,
In the instant case, you can get the credit of service tax paid on the airfare i.e. tickets, if the same were booked for business purposes and not for personal purposes in the light of commercial expediency principle laid down by the Apex court in the case of J K Cotton after the amendments made in the definition of Input services w.e.f. 1.4.2011. Further, TDS u/s 194H is required to be deducted on the commission portion in light of the Letter F. No. 275/70/2009-IT(B), dated 22-12-2009 (http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/DTL2011/cirsec194h.htm). Further, you can also refer circular no 713 dated 2.8.1995 and circular no. 715 dated 8.8.1995.
Hope the above suffice.
In the instant case, you can get the credit of service tax paid on the airfare i.e. tickets, if the same were booked for business purposes and not for personal purposes in the light of commercial expediency principle laid down by the Apex court in the case of J K Cotton after the amendments made in the definition of Input services w.e.f. 1.4.2011. Further, TDS u/s 194H is required to be deducted on the commission portion in light of the Letter F. No. 275/70/2009-IT(B), dated 22-12-2009 (http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/DTL2011/cirsec194h.htm). Further, you can also refer circular no 713 dated 2.8.1995 and circular no. 715 dated 8.8.1995.
Hope the above suffice.
Comments
CA Rahul Prashar
11-Jan-2012 , 10:21:29 amDear Ashish, pls provide the full reference of case and service tax credit will be available on service tax charged by the travel agecy 0.618% or on the tickets attached with the air travel agecy bill. thanks for clarification