Air travel agents

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Bhanupriya Kaushal (Querist)
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07 May 2016

We are travel agents doing tickets by purchasing them from other agents who in turn give us commission and we sold those tickets by keeping a mark up.for example there is a ticket of Rs 22000 and we purchase it for Rs 20000 after deducting commission of Rs 2000 from it and sold those tickets for Rs 23000.then what will be the actual profit and on which amount should we charge the service tax?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 May 2016 1. Profit is Rs. 3,000 ( 23,000 - 20,000).

2. Service tax is to be charged on the basic fare ie Rs.22,000.

3. Rate is 0.70% as ST and 0.025% as SBC and 1,40% as ST and 0,05% as SBC for domestic and international booking respectively.

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