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SERVICE TAX B2B BUSINESS

Started by arindam_647, October 19, 2012, 12:35:03 PM

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arindam_647

Dear Sir,
          For Travel agency doing b2b business, it is found that there is a double or triple taxation on same service in the following way-

Suppose Mr.A book a travel package in M/S XYZ agency,travel agent, in consideration of Y amount,incl. service Tax.  M/S XYZ agency, transfer the package to any other travel agent, say M/S ABC LTD for ground handling of Mr.A in consideration of Z amount incl Service Tax. 

Now my question is can M/S ABC Ltd Charge Service Tax on it's bill to M/S XYZ agency?? if they charge,  the end user"Mr.A" has to pay double Tax, one to M/S XYZ and another to M/S ABC Ltd. Whether there is any provision to escape from Service Tax on 2nd part for Mr.A.??

Regards
Anupam