02 March 2009
Non registered air travel agents who purchase tickets for their customers from IATA registered agents for a commission do not qualify under Air travel agents category for service tax. Do they fall under any other category. And if they do then what is the amount liable for service tax?
02 March 2009
Dear Venkatesh, As per Section 65(4), any person angaged in providing service connected with the booking of passage for travel by agent is Air travel agent. and air travel agent includes GSA/IATA agents also and only exlcudes employee of airlines providing such services. Though Dept. in its letter No. CE/20/ST/Air travel/97 clarifyies that sub agent who are not getting commission as also not making out tickets direclty from airlines are not required to pay Service tax. So, if sub-agent is charging any commission from customer than it will attract service tax, otherwise not.
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