13 July 2016
Mr A is running a Travel Agency. He books Railway Tickets online & makes payment through his Saving A/c. He collects cash (mostly) & cheques (in few cases) from clients & deposits in his saving account. He maintains no accounts / issues no invoices etc. Consider the value of tickets booked during year is more than Rs 10 Lacs. My question is :- 1. Whether he needs to get registered under Service Tax? 2. If yes, then in which category (accounting head)? 3. If Service Tax to be paid, on which value of ticket booked & at what rates? Kindly share your views.
13 July 2016
In continuance of the same Mr A also books Air tickets indirectly. He is sub agent of a travel agent Mr B. Mr A keeps advance deposited with Mr B and if required by client he books ticket on the portal of Mr B. In turn Mr B pays him the commission (after TDS). Yearly commission amount being approx Rs 25000/- In this case also:- 1. Is he required to take Service Tax Reg & if yes in which category/ accounting head? 2. At what rates Service Tax to be paid if any? Kindly share your valuable opinions.
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