IATA air travel agent

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Apoorv (Querist)
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17 March 2009 How much amount is an IATA approved air travel agent liable to pay as service tax of a ticket?

Iata approved airlines (Air India,Jet,kingfisher)ticket has two components -
1.basic fare
2.taxes
Agent gets commission on basic fare.

Low Cost carriers (eg-Spice Jet,Indigo)gives transaction fee to agents.

CA. MITHUN KHATRY

CA. MITHUN KHATRY (Expert)
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17 March 2009 if airlines provide comission the 2 optios to pay service tax.
1. pay service tax@.618% of basic fare for domestic tickets & double i.e. 1.236 of BASIC FARE for intenational tickets
2. pay service tax@10.3% on commsision received from airlines.

on transaction fees received pay service tax@10.3% on transaction fees.

REMEMBER ; YOU RECEIVE COMMISION FROM AIRLINES GROSSED UP I.E INCLUDING SERVICE TAXSO TAKE THIS INTO ACOUNT

OPTION ONCE EXCERCISED MUST BR FOLLOWED FOR FULL FINANCIAL YEAR