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air /rail travel agent

Saif Ali (Student) (132 Points)

13 August 2017

person registered as an agent with two entity.
1. irctc :where he recieves commision from irctc for rail booking done ,at fixed interval.
2. another portal:for flight booking. the reciept is generated for example of rs. 100 to the actual customer. but the agent has to pay say for example rs. 80.means rs.20 is the amount he earn.

what are the gst implications for such agent.
because he is niether an aggregator to levy gst. nor he is liable to collect tcs as per section 52.
but the portals are asking him to get register u/s 24 (vii)
so please provide me the info. what are the obligation on him

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10 Replies

NITIN KOTAK (SERVICE) (1465 Points)
Replied 13 August 2017

[vi] persons who are required to deduct tax under Section 51, whether or not separately registered under this Act; your business is ecommrr

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NITIN KOTAK (SERVICE) (1465 Points)
Replied 13 August 2017

How to define e-commerce under Goods and Service Tax Law?

E-Commerce business became a wide trend in present business scenario. How to calculate GST for online business? What is E-Commerce?

The definition of Electronic Commerce in terms of GST Law explains as below:

As per GST Law, ‘electronic commerce’ shall mean the supply or receipt of goods and / or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, Web services, Universal Descripttion, Discovery and Integration (UDDI), File Transfer Protocol (FTP), and Electronic Data Interchange (EDI), whether or not the payment is conducted online and whether or not the ultimate delivery of the goods and/or services is done by the operator.

Who is an E-Commerce Operator in terms of GST Law?

As per Goods and Service Tax Law, an E Commerce Operator shall include every person who, directly or indirectly, owns, operates or manages an electronic platform that is engaged in facilitating the supply of any goods and/or services or in providing any information or any other services incidental to or in connection there with but shall not include persons engaged in supply of such goods and/or services on their own behalf.

NITIN KOTAK (SERVICE) (1465 Points)
Replied 13 August 2017

If your business as per above definition of e-commerce , than you have to register u/s 24, of GST act.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 14 August 2017

you are not an e commerce operator but since you are an agent of taxable person you are required to get register....section 24(vii) says person who is providing taxable goods or service on behalf of other taxable person then he has to compulsory register under gst irrespective of his turnover value.....

1 Like

Saif Ali (Student) (132 Points)
Replied 18 August 2017

it means i have to select 'others' category in registration

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Saif Ali (Student) (132 Points)
Replied 18 August 2017

so what are the obligation after getting registration

NITIN KOTAK (SERVICE) (1465 Points)
Replied 18 August 2017

File the return and pay the tax if payable after TDS deduction

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 18 August 2017

as said by nitin your obligations are same as any other tax payer of paying tax and filling returns.....I don't think you have any obligation to collect tcs or deduct TDS.....and also government has postponed the TDs/tcs provision, so even there will be no TDs deduction on your commission amount.....in category of registration you may choose supply on behalf of taxable person or selling through an e commerce portal