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e commerce operators

REKHA (chartered accountant) (25 Points)

23 September 2017

hi. my client is an online travel agent. he buys ticket stock from airlines and sells in online and offline mode.

b2b and b2c.
how gst should be treated. pls help

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3 Replies

(Guest)

afterall he is getting commission for this

many question invalls in this

the way he gets his income through selling on line

tickets commission is included in sales amount of tickets or

for commission he generate bill for that to client

and gets commission through cheque etc

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RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 24 September 2017

Yes I agreed with above said way...
Also he deal registered persons then he ll be use B2B and Deal to end users also make B2C transactions....

SKumar (Manager) (385 Points)
Replied 24 September 2017

Rekha

If your Client is buying Ticket Stock from Airlines by depositing some advance then Airlines would also probably deduct GST on it.

Liable to Deduct 1% TCS

Travel agents providing online ticketing and other services will be liable to deduct 1 per cent tax at source under the GST regime as they have been classified as e-commerce operators.

Special provision related to determination of value of service of

booking of tickets for air travel by an air travel agent

Taxable value is 5% of basic fare in case of domestic travel and 10%

of basic fare in case of international travel. Basic fare means that

part of the air fare on which commission is normally paid to the air

travel agent by the airline.

The expression ‘basic fare’ means that part of the air fare on which

commission is normally paid to the air travel agent by the airlines.

~~~~~ x~~~~~~

Airlines pay Commission and/or Incentives or Bonus for volume achieved.

Bonus may be taxable if its over & above commission.

But if Bonus is as per a Pre-supply agreement, I think it can be treated as discount. Pls verify this point. I hope other forum experts can throw some light.