HELLO ALL,
I AM A SERVICE PROVIDER ENGAGED IN THE AIR TRAVEL AGENT SERVICE AND TOUR OPERATOR SERVICE.
I HAVE 2 QUERIES:-
A. IN CASE OF AIR TRAVEL AGENT SERVICE:
1. IN CASE OF AIR TRAVEL AGENT SERVICE WE CHARGE SERVICE TAX @ 15% ON OUR MARKUP CHARGED FROM THE CUSTOMER. WE ALSO RECEIVE COMMISION FROM THE TRAVEL AGENT (SUCH AS RIYA, VIA ETC). ARE WE LIABLE TO PAY SERVICE TAX ON THE COMMISION RECEIVED FROM SUCH AGENTS ?
2. IN CASE WE DIDNOT CHARGE ANY MARKUP FROM OUR CUSTOMER AND RECEIVES COMMISSION FROM SUCH AGENTS ONLY. ARE WE LIABLE TO PAY SERVICE TAX ON SUCH COMMISION EARNED ?
B. IN CASE OF TOUR OPERATOR SERVICE:
1. WE BOOK HOTELS, AIR TICKETS, TRANSPORT ETC (i.e. Total package) FOR OUR CUSTOMERS FROM DIFFERENT AGENTS / DIRECT FROM AIRLINES(E.g. Make my trip, Riya, Via, Indigo ) ON TOUR PACKAGE INCLUDING ACCOMODATION, TRAVEL AND TRANSPORT AND CHARGES A LUMPSUM AMOUNT FROM CUSTOMER, THE RATE OF SERVICE TAX RATE IN SUCH CASE WOULD BE 4.5% (70% ABATEMENT). CAN WE ISSUE DIFFERENT INVOICES FOR HOTEL, AIR TICKET AND TRANSPORT AND ADD THE PROFIT IN ONLY HOTEL INVOICE AND CHARGE SERVICE TAX @ 1.5%(90% ABATEMENT) ON HOTEL INVOICE AND MAKE INVOICES OF AIR TICKET AND TRANSPORT AT PURCHASE PRICE ONLY WITHOUT ADDING ANY MARKUP(PROFIT).
2. IN THE ABOVE CASES CAN WE TAKE CENVAT CREDIT ON INPUT SERVICES RECEIVED FROM AGENT LIKE MAKE MY TRIP, GRN CONNECT, DESIYA, ORANGE TOURISM ETC.
Please provide detailed explanation on the same
Regards,
Vaibhav Suryawanshi
CAclubindia
