service tax is applicable on AIR TRAVEL TICKET which is sold by travel agent ,

This query is : Resolved

satendra kumar (Querist)
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20 October 2007 if the TRAVEL AGENT sold the ticket after purhase the ticket from IATA agent then services tax is applicable on such sub traveller agent

R.V.RAO

R.V.RAO (Expert)
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20 October 2007 ACCORDING TO DR. SANJIV AGARWAL'S ASSESSEE'S GUIDE TO SERVICE TAX ( 2006 EDITION)(TABLE-8),IN CASE OF AIR TRAVEL AGENTS, WHAT IS INCLUDED AS TAXABLE SERVICE IS AIR TRAVEL AGENTS SERVICES REGISTERED WITH IATA,TOUR CONDUCTING COMPANIES ENGAGED IN AIR TRAVEL,DOMESTIC AND INTERNATIONAL TICKETING,AND AGENTS CHARTERING PRIVATE COPTERS.
WHAT IS EXCLUDED AS TAXABLE SERVICE IS SUBAGENTS,EMPLOYEESOF AIRLINES,CARGO SERVICES,AIRFARE CHARGES.
SO SUBAGENT CANNOT CHARGE SERVICE TAX AGAIN.
R.V.RAO

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M Janak Rao

M Janak Rao (Expert)
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20 October 2007 If the Travel Agent sold the ticket and he earn Rs. 8,00,000/- above Yearly than Service Tax will be paid to Govt.@12.36% as per Govt Calcualtion.

Exempted only if below commission Rs. 8,00,000/- Annual

Service Tax means Service is given to customer and earn from commission this is the Taxable.

if you purchase origianl invoice/bill from IATA agent and he charges service tax in invoice than you cliam CENVAT (claim)and Difference Tax is paybale.

Like Example:
Purchase
Travel Ticket cost Rs. 1,00,000/-
Charges Service Tax Rs. 12,360/-

Sales
Travel Ticket Rs. 1,05,000/-
Charges Service Tax Rs. 12,978/-

Difference Amount 12360-12978=Rs.618 will be paid by you to Govt Account

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