04 May 2017
Dear Experts, while booking package , can I assume air travel booking as pure agent services and those are out of service tax ambit.
ex. I book a package of Rs 5 lakh, out of this 3 lakh is booking cost, hotel booking cost is 1lakh, Rs 50000 is local tour & sight seeing. This 5 lakh package is of inclusive service tax component as well.
My question is should i reverse calculate service tax @9% on Rs 2 lakh amount or whole amount of Rs 5 lakh.For AIr travel can i consider myself as pure agent. If pay service tax on whole amount my margin would become zero.
If it is on whole amount, there will be no margin available to me.
CAclubindia
