Service tax applicability

This query is : Resolved

Jyotsna (Querist)
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01 January 2013 I m an IATA agent, As a freight forwarder I booked Space with Airlines & Sell it to My Exporters.

after every booking Airline gives me 5% IATA commission plus 10% Discount.

Service tax is applicable to 5% IATA commission.

Kindly advice that the 10% Discount will attract to service tax as per new service tax rules e.f. 1st July'12.

Thanks
Jyotsna

Kaushik Vinod

Kaushik Vinod (Expert)
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04 January 2013 Dear Jyotsna,

If you are issuing invoice and charging Service charges then Service tax applicable on discount also.
In other words you can say that for attracting Service tax on discount Service provider has to issue the Invoice.

Thanks