Service tax liability of air travel agents


This query is : Resolved 

(Querist)
06 February 2014 What is the latest law applicable to Air travel agents in relation to the amount on which they have to pay service tax?
On what criteria can he take service tax input?

06 February 2014 Either pay full rate i.e. 12.36% of service tax on commission income.

Or he have option to pay .6% + EC of Basic Fare for domestic Bookings

and 1.2%+ EC of Basic Fare for International Booking.

He may avail CENVAT Credit on eligible Input Services.

Rajat Bansal (Querist)
07 February 2014 Good Morning Sir
Further i want to know that Can the client take input of service tax who is being charged service tax by an air travel agent who is using 0.6/1.2% rate.?

07 February 2014 Yes he can avail CENVAT Credit on Input Services.


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