08 April 2012
My client is IATA Air Travel Agent and getting commission on air tickets booking. So my client has taken a registration under services of AIR TRAVEL AGENT with service tax department. My client is also getting service charge on VISA Assistance and commision on travel insurance. Now my client started referring its customers for hotel booking and tour packages to other tour and travel operators. For this my client got a commission on referring customers. Sometimes, tour and travel operators raised a bill in the name of my client and after adding some profit margin, my client raised bill to its customers for tour package.
My query is 1.whether my client is liable for registration for service tax on Tour package and Hotel Booking.
2. Whether service tax payable on profit margins on hotel booking and tour packages Please tell me the service tax applicability on air travel agents.