Service tax for travel agent

This query is : Resolved

Alim Khan (Querist)
Follow

12 August 2013 .One of our client is a travel agent and deals in Hotel booking, rent a car and complete Travel package. He books the trip for his clients wherein clients pays money to him and in turn he pays to some other Travel agency.

.He does not charge service tax but bill which he receive has service tax component.

.Should he go for service tax registration or what’s the limit for registration for service tax?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

12 August 2013 In this case your client maybe called an intermediary and can avail the tax paid by others and pay tax on the amount charged after availing the abatement.
If the value of his services exceed 10 Lakhs in the pr yr then he is liable to register.