Sub agent of an iata agent(air ticketing)

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2011 HI,

I AM AN SUB AGENT I BUY INTERNATIONAL AIR TICKETS FROM MY IATA AGENT AND SELL IT TO MY CUSTOMERS WITH A SMALL PROFIT MARGIN. I DON'T GET ANY COMMISSION FROM MY AGENT.PAYMENT TO IATA AGENT IS MADE BY ME THROUGH MY BANK ACCOUNT.(1) DO I COME UNDER THE SERVICE TAX NET.(2) DO I HAVE TO CHARGE SERVICE TAX TO MY CUSTOMERS, IF YES THEN HOW MUCH % AS ST ON INTL AIR TICKET IS 515 MAX.

U S Sharma

U S Sharma (Expert)
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17 August 2011 you are not entiled to charge any service tax on airfreight, but if you add your commission to your bills, such commission is subject to service tax subject to exemption limit of 10L

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 sir, am i eligible for ST on the total amount i collect from my customer or the commission i charged over and above the airfare that i receive from my IATA agent.If on the total amount then is it on the basic fare or the total value of the ticket.

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Querist : Anonymous

Querist : Anonymous (Querist)

U S Sharma

U S Sharma (Expert)
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17 August 2011 on air tickets service tax liability is limited to IATA agents only, and only they can pay the same, sub agents dont have any role on it, but if they charge any service fees over it, then such service fees is liable for service tax separately.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 on what amount i have to charge service tax to my customer (1) the total invoice amount or the service fees. please give an example for better clarification.