Service tax on commission agents - travel
This query is : Open
04 April 2012
Can commission agents operating in the travel space, - air, rail, bus etc. avoid payment of service tax by positioning themselves as traders (buyer & seller) instead of a pure agent.
05 April 2012
No,You cannot do this.
Message likes :
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05 April 2012
Sir,
Could you elaborate further as to what stops a business to do this. If the entity takes the position that it is in the business of buying and selling the seats, in a bus / rail / air transport and selling it to the end consumer, what regulations stops it from doing so?
Could you elaborate further as to what stops a business to do this. If the entity takes the position that it is in the business of buying and selling the seats, in a bus / rail / air transport and selling it to the end consumer, what regulations stops it from doing so?
05 April 2012
Dear These agencies are governed by airlines/IRCTC..The Dealer net work have tie ups/Agreements with air travel/rail authority to operate with guidelines.Its not any body can operate & sale.You have to have their agreements,deposit of security,licence, Authority,Password ,service charges claim & so much issues to operate legally.
05 April 2012
LET me for the time being focus on bus travel, LET us say the business, (agency) enters into such an agreement with the bus operators, in which it buys and sells bus tickets, then can the agent position himself as a trader?
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