04 November 2016
Hi Sir, I'm running a Tour Operator Business. We Arrange Tours and Book Air Tickets also from our Agent VIA.com and we'll get some commission from Airlines like 1% - 2% approx on Basic Fare and we're paying Service Tax of 0.60% for Domestic and 1.4% on International Tickets on the Base Fare respectively...Now my query is Recently i Came to know that we have to pay the service Tax on the Commission also which we received from the Airlines. If YES what is the Tax rate. Please kindly help me.
06 November 2016
Thank you very Much sir. But the Service Tax Officials are asking to pay 12.36% on commission received from Airlines for the FY 2014-15 and 14% for FY 2015-16 with Interest. Please kindly Advise me how to handle this issue
06 November 2016
Option is given to air travel agents to pay service tax on specified percentage I.e 0.75% for domestic booking and 1.50% on international booking(present rate rate varied when service tax rate changed) on basic fare once it is paid no need of further payment on commission. Ask them to refer on the relevant circulars.
11 November 2016
Good Afternoon Sir Can you assist me with the Notification no./Circular No. saying that Either Service Tax to be paid either on Basic fare @ 0.75% for Domestic and1.5% for International OR 14% on Commission received from Airlines. Because as i said earlier that we have paid up to the date service Tax @ 0.75% and 1.5% on Basic fare...but now Service Tax officials are are asking to pay Service tax of 12.36% on commission received from Airlines u/s 194H with Interest and penalty.
28 November 2016
Good Afternoon Sir, Thank you very much for your reply and previous issue was solved. Now the latest query is I Have Two service Tax Registered Code 1) Air Travel Agent and 2) Tour Operator Service. My query is that if a Client Booked Air Tickets with us and paid full amount for Air tickets and if suppose later after 7-10 days he also confirmed Tour Package with us and paid the full Amount, How much of Service Tax we have to collect from the Client? Is it 4.5% on only Tour Package (excluding Air tickets) or 4.5% on Both Air Ticket + Tour Package..please kindly clarify
28 November 2016
Thank you sir..but since from last two years we're paying service Tax separately for Air tickets @ 0.60% and for Tour Operator @ 3.5% (earlier in 2015) as they transaction made in two different dates. Example: Mr. 'X' Booked his Air tickets on 10th November by paying Rs.50,000/- and later we had convinced for Tour Package also which cost Rs. 50,000/- and he paid full amount on 20th November. Now as you said we have to collect 4.5% on Rs. 1 Lak i.e Rs. 4500/- right? How can we ask the client pay 4.5% Additional for Air tickets which the transaction took place 10 days before..! In that case he can go to any other Tour Operator to Confirm the Package and he can save 4.5% Service Tax which is on Air Tickets..! That will be a huge loss for business. Please Kindly advise is there any option to counter this issue.
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